The price of Bitcoin failed to make new highs, and the price also failed to make new lows when it fell. Just like every day for the past week.
Bitcoin Price Analysis 1-Hour Chart
Yesterday's downward trend was halted by strong buying at support levels of 2580 CNY (BTCC) and $388 (Bitstamp), where prices recovered around 15:00 today. A series of lower highs and continued diagonal upward support have created a contracting triangle price pattern (marked by the blue line in the chart).
CNY exchanges – specifically BTCC – seem to be seeing sell orders regularly, even as USD exchanges are trying to push the market price higher.
Earlier today, the 1-hour 20-period EMA fell below the 200-period EMA – typically a bearish sign. This crossover occurred on many charts but the market failed to post further declines. If this signal is ignored, it means that a consolidation is occurring, which can be confirmed by a triangle price pattern, but unfortunately, the chart does not give us a clue from which direction the price will break out of the triangle pattern. Although our analysts are mostly leaning toward an increase, from a rational perspective, speculation without solid signals on the charts to base our judgment on is worthless.
Before today's wavelet rise, the 1-hour MACD indicator stayed at the bottom of the Bollinger Bands, and the stochastic indicator also gathered at its lower end. The RSI indicator has the opposite meaning of diverging from the low of the day. Combined, these momentum indicators point to a higher but weak outlook back to where we started – the golden mean, which is disappointing.
summary
The price is clearly in a transitional phase and we first need to be shown the bigger picture before we can buy with confidence. What we are eager to see is which direction the market will develop behind the contracting triangle. If the triangle pattern breaks out to the downside, we can expect a long-term downward move. We're still hoping that this triangle model eventually converts into an uptrend – either because sellers are tired of the chill on the floor, or because of market uncertainty and tomorrow's Fed rate hike, and the end-of-month Classic(TM)/Unlimited release that fails as expected.
Bitfinex order depth chart and volume indication:
The author himself is a Bitcoin trader. Trading and investing are risky. CCN and BitBang will have to waive any liability for any losses and risks caused to readers by this Bitcoin price analysis report.
This article was originally published on the evening of January 26, 2016 (UTC).
BY :VENZEN KHAOSAN
Source: Bitside: http://www.btcside.com/
Original link: https://www.cryptocoinsnews.com/bitcoin-price-analysis-groundhog-day/
