Bitcoin market ceases consolidation and awaits further operational signals

The price of Bitcoin has fallen back above the 200-period moving average in the 4 hours and entered a consolidation phase. From the current price trend, it is still impossible to get a clear market direction, but we still try to analyze some clues.

Bitcoin Price Analysis

Bitfinex 4-hour chart

From xbt.social report earlier today:

The 4-hour Bitfinex chart shows that the price is consolidating on top of the red 200-period moving average, a level that has provided important support since Monday.

The current configuration structure has the potential to pull the green 20-period moving average closer to the 200-period moving average, as highlighted on the left side of the chart. Should either fall below the 200-period moving average, we can expect a decline to find further support.

The levels annotated with grey lines are the current major horizontal support levels, with the closest horizontal support levels located at $265 and $250.

Will the 200-period moving average hold up? If so, the price is expected to climb to the resistance level below $300. The analysis on Monday warned that the price may be pushed below $300 from the current position, but this does not mean the continuation of the bull market, but may be an upward correction wave, and the price may return to the current consolidation range at any time. The confirmation sign of the bull market should be a market that rises above $300, so it is recommended that everyone remain patient and restrained.

Don't play with the obvious, play with the invisible. -Miles Davis

Summarize

After a few days of tension, the price seems to have returned to a pause. Technical indicators warn that a wave of decline to lower levels may now occur, and the decline signal has been discussed above. There is resistance at the previous reversal level of $300. Once it is broken, it will mean the immediate start of a bull market. It is best to wait for further signals before starting to trade.

Bitfinex Depth Chart and Bid/Ask Volume Monitor: