Bitcoin Price Being Bid Higher?
Bitcoin price has been trading sideways near $400 and 2650 CNY all day, and the price pattern resembles the kind of structure we see prior to both advance and decline.
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Bitcoin Price Analysis
Time of analysis: 15h00 UTC
BTCC 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Price surged above both the 1-hour chart’s 20-period moving average (20MA) as well as the 200MA. This is an initial bullish indication, that must still be confirmed by the 4-hour and 1-day chart.
The 1-hour chart indicators are neutral and indicate neither bullish or bearish bias. The price pattern – depending on how one looks at it – resembles the slow tapering that we often see prior to a drop-off and also prior to advance.
What weighs in favor of advance (as opposed to decline) in the current 1-hour chart, is the fact that the market had traded price into a bullish condition above both the 20MA and 200MA, perhaps as an indication of bullish sentiment.
Whichever way price eventually heads towards, we’d expect to se price clearly position in relation to the 20MA and 200MA in the 1-hour chart, and for this positioning to then reflect in the 4hr chart and, eventually, 1-day chart.
Summary
Bitcoin price is trading sideways near $400 and 2650 CNY. Given the shallow launch of yesterday’s surge higher, the direction of the next price move is unclear. The 1-day and 4-hour chart 20MA/200MA alignment are both still biased to decline, and the market can easily pull price to new lows if it chooses. However, price has been finding support near 2500 CNY and $380 recently and a consolidation period, at least, or trend reversal, at best, may be underway. Best to wait for price to position in relation to the 20/200 moving averages before trying to guess direction.
