Bitcoin price continues trading above support as 4,000 CNY and $600 holds. Slowing price action implies an imminent ramp-up in volatility, yet technical analysis suggests traders wait for additional consolidation.
This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now.
Time of analysis: 12h00 UTC Thursday
Bitstamp 1-Day Candle Chart
From the analysis pages of xbt.social, earlier today:
A bullish price pattern in the 1hr chart may be setting up a surge, however, a look at the 1day chart (above) shows that the indicators are not typically aligned for a strong wave of advance.
Horizontal bars show the indicator configuration typically seen at the start of large waves of advance: price is above its 1day 200MA (red). Notice the position of MACD above its zero line in each case, as well as the fact that the stochastics had usually grouped at zero prior to the advance.
Currently, we see MACD above zero and price holding above its 200MA which does favor advance. However, the stochastics are still descending.
Although we currently have an apparent bullish configuration at all timeframes, the condition of the 1day and 4hr stochastics should warn traders to stay on the sideline and remain patient.
Summary
Bitcoin price maintains position above $600 and 400 CNY. This is a bullish chart condition but does not preclude a dip lower prior to a new wave of advance. Wait for the bullish chart signals. Better to get in on a confirmed move a little late, rather than risk money too soon.
Bitstamp Depth Chart and Buy/Sell Volume
Click here for the CCN.LA interactive bitcoin-price chart.
What do readers think? Please comment below.
This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
Disclaimer
The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Bitcoin price charts from TradingView.Image from Shutterstock.
