Bitcoin wave structure is not easy to impact or consolidate at $270/$275

Despite the lack of progress, the continued buying orders have pushed the price of Bitcoin up. The price on Bitstamp and Bitfinex failed to fall to the support line. The general direction of the price remains uncertain until more evidence is found.

Bitcoin Price Analysis

Bitstamp 4-hour chart

The price has risen today back towards the previous support zone in the $270s (Bitfinex). The Chinese Yuan is trading at the psychological level of 1700 Yuan and just above the 200-period moving average on the hourly chart.

The current wave structure is not prone to impulse waves. In other words, it will not continue to advance to $300 and beyond. Its structure is a correction pattern, and readers can see the zigzag shape of its bottom structure in particular. Such a oscillating trend is not a previous feature of an impulse wave (see, for example, the price fluctuation feature of $250 to $300 in July).

However, a corrective wave of this magnitude is unusual. It is no longer part of the preceding down wave. This forces us to review our future expectations: we should be prepared that the price may not return to $250, but consolidate in the $270/$275 support and resistance zone or make a large zigzag (three waves) to reach above $280.

Why, of all the exchanges, only Bitstamp and Bitfinex have not fallen to their 100-period moving averages remains a mystery. Whether they are going to continue to do so, or whether last Saturday's lows have been truncated on the charts of these two exchanges, our prediction of an incomplete decline remains valid with respect to these two exchanges, but not for the rest - especially the RMB exchanges - which are steadily pushing higher.

Small losses are part of the game. Big losses can knock you out. - Doug Cass

Summarize

There are no action suggestions in the current Bitcoin price chart. The RMB exchange and futures charts are trending upwards, but the Bitstamp and Bitfinex charts are suggesting a downward trend. When in doubt, stay on the sidelines.

Bitfinex Depth Chart and Bid/Ask Volume Monitor: