Bitcoin Price Surges To $250
Story By: Venzen Khaosan
Bitcoin price has surged above the overhead 1-hour 200MA that has shadowed the decline since early March. The move hit $250 and 1560 CNY in what looks like a corrective price wave that may come back down
Bitcoin Price Analysis
BTC-China 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
A look at the 1-hour Bitfinex chart. The MA configuration is not a buy signal but can form one if price were to break above the red 200MA. The blue 50MA and orange 100MA have been flat-lining for most of this wave to above the 200MA. The indicators don’t preclude a move higher and perhaps this is what may transpire from the past week’s zigzagging price waves.
The 1-day chart’s sell signal, formed by the MAs at that timeframe, is still borderline and could, by now, equally transform into a buy signal. The ambiguity in the charts is getting more pronounced – and not less – as price action unfolds.
Objectively, we have not seen a higher high or lower low since the 25th of March. The evidence points to this all being a consolidation. If the consolidation is setting up a move higher then it is either underway or will start after another higher low. If the consolidation is going to end up in a decline, then we are testing the upper edge of its range with this move.
The accumulation that we have been witnessing (frequent spikes up) is matched by equal amounts of selling – otherwise price would not have been consolidating in a narrowing range. The sentiment about direction is polarized and the bulls and bears are equally matched.
We have to wait for either side to take control and establish a direction. We have to be ready to change our tactics if price climbs above the 1-hour chart’s 200MA again. Whichever way price surges, it should be strong once direction is established. Our sell entry is defined by the Trade Recommendation linked at the top of the page [xbt.social analysis view only] and discussed previously. A long entry will be tricky, but we’ll look for a suitable entry if advance launches.
Summary
Bitcoin price surged to $250 / 1560 CNY after spending several days forming choppy price waves in the $240s and 1530s CNY price range. The wave is starting to run into chart resistance and the indicators are flashing “overbought” signals on the move. The reversal back down – how deep it retraces, and whether it re-enters the consolidation pattern – will reveal the next phase of the price chart.
Bitfinex orderbook depth shows lots of sellers above while the buy/sell volume shows the bulls were buying today.
Via:https://www.cryptocoinsnews.com/bitcoin-price-surges-250/
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