After a shaky start in choppy trade around $230 and $240, bitcoin price is covering increasingly larger distances as the upstrend accelerates. Will it go to the moon. Chart technicals suggest not yet.
Bitcoin Price Analysis
Time of analysis: 15h09 UTC
BTC-China 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
RSI made a regular divergence to the new price high, and hence today’s price correction. Larger RSI reverse divergences have formed in the 4-hour chart as well as the 1-day chart. The 4-hour reverse divergence is to the mid-July high and the 1-day reverse divergence is to a high made in June last year. However, today’s daily candle has not yet closed so the 1-day timeframe indications remain tentative.
What seems missing in the current wave is a final curving wave to the upside – a “hook up” – the last 5th wave – as can be seen in July of this year’s advance and also (in a mini-version) on the 7th of October in the center of the chart. Such a wave will give a final RSI divergence to the upside and indicate the end of the uptrend.
Price has not yet reached its 20MA (green) – it may turn back up before touching it, or it may drop below and give us a confirmation that a larger correction is playing out.
Experienced traders control risk, inexperienced traders chase gains. – Jim Rohn
The upside acceleration that has become evident in this advance may still see price approach $300. Before potential targets such as $300 or $360 can be suggested, we need to see the price pattern of a correction. Wait for the corrective price action to play out below $300 for more clues of possible upside.
Bitfinex orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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