Bitcoin Price In Medium-Term Decline

edbriv (49)in #bitcoin • 9 years ago

Bitcoin price slipped over the edge during early Sunday trade. Analysis looks at a few basic chart indications and potential decline targets.

Bitcoin Price Analysis

Time of analysis: 14h00 UTC

Bitstamp 4-Hour Candle Chart

From the analysis pages of xbt.social, earlier today:The 4-hour Bistamp chart shows how the market had sold price straight through $640 support, from where price has been slowly declining toward $600 and 4000 CNY all day.Although 4hr MACD had signalled this morning’s decline (magenta circle), the stochastics (top panel) are now grouping at their minimum, while RSI has achieved a previous lower low (horizontal blue annotation). The stochastic and RSI indications imply that price may need to correct before decline to $600 can be achieved.The present decline happens below a bearish 1-day chart (MACD declining below its signal line), as well as a bearish 3-day chart where MACD and the stochastics are both declining. Hence, we may have to wait a week or two for the decline to bottom out and find support.Based on the 1-day and 3-day bearish charts, the eventual destination of this decline looks to be at least $580, at the previous corrective low. Some analysts are calling for decline to structural support at $450, and this is certainly possible, if $580 fails.Fortunately, we don’t have to guess the bottom. Once we see the 4-hour MACD establish above its zero line and then advance above its signal line – with price above its 200MA, as in the extreme left of the chart – that will be the signal to look for an entry into the next wave of advance. Advance will once again have to grapple with the all-important $680 resistance level.

Don’t worry about what the markets are going to do, worry about what you are going to do in response to the markets – Michael Carr

Summary

Bitcoin price remains in a medium-term correction and may be unfolding the final decline to support prior to, hopefully, a bounce-and-surge rally. Downside targets are at $600 and $580. It is preferable that the market find support at $580 quickly, and without declining lower, since this could draw the 1-week candle chart into bearish bias, and extend the decline to a few months.