Bitcoin price made a determined low to $226 (Bitfinex) and 1430 CNY (BTC-China), today. Selling pressure seems relentless and the decline may only be midway to the bottom.
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Bitcoin Price Analysis
Time of analysis: 13h26 UTC
BTC-China 4-Hour Chart
Why The Preference For BTC-China Charts In Analysis?
From the analysis pages of xbt.social, earlier today:
The earlier advance caused indicator divergence as it climbed higher. The same dynamic applies as described in yesterday’s analysis: every time an upward correction causes reverse divergence in the indicators, an additional low is possible.
Price is currently touching the support and resistance level around $225 and 1410 CNY (higher of the two magenta lines in the chart). It is not clear whether this is the middle of decline or its ending: strong divergence in the stochastics implies a move higher is required, but this decline seems relentless and may continue lower after a pause.
Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. – John Templeton
CoinCompetition
A new round of CoinCompetition starts today, in the new weekly format. The market has treated participants to a tumultuous start of the competition.
The May round of CoinCompetition was won by tiapan84, who has been awarded 5 BTC and xbt.social membership. Well done, tiapan84, and good luck to all current contenders.
Summary
Once Bitcoin price can break the divergence cycle and advance through upside reverse divergence, we’ll see price heading back up to the 4hr 200MA near $237 and 1470 CNY. Until then, price is below both the 20MA (green) and 200MA (red) in the 4-hour chart and decline could continue to $215 and 1300 CNY, as illustrated by the lower magenta level in today’s chart.
Bitfinex orderbook depth and Buy/Sell Volume:
Click here for the CCN interactive price chart.
source : cryptocoinsnews
