The Bitcoin Market is Now Characterized as a Rudderless Ship

The wave line of Bitcoin's price decline in the past two days seems incomplete, with neither a double bottom structure nor a clear new low, which makes us doubt that a larger trend reversal may occur next. Instead, the market chooses to test the upward trend slightly, but it is obvious that there is a lack of confidence.

Bitcoin Price Analysis

Bitfinex 15-minute chart

From xbt.social report earlier today:

The scenario described in last week’s summary is now happening. The lack of a decisive new low on the chart has led to price action trading in an upward trend, above the 20-period moving average crossing the 50-period moving average on the 4-hour chart.

The price has very little room to move on the chart, so we might see $231 (the orange 100-period moving average) and - if the move accelerates - the red 200-period moving average, which is $235. The equivalent levels for BTC China are 1440 and 1460 yuan.

Once prices reach near these levels, the reverse divergence of the upward trend will strain long positions and prices will return to the downtrend channel. We expect to see a similar reaction as we witnessed in late May, but it is too early to predict such an outcome.

He who is patient gets what he wants. – Benjamin Franklin