Bitcoin Price Drops To Support

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Bitcoin price sold off strongly, today, and has given up almost $40 and 500 CNY, so far.

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Bitcoin Price Analysis

Time of analysis: 15h00 UTC

BTCC 1-Hour Chart

From the analysis pages of xbt.social, earlier today:

A powerful sell signal formed during early trade and price was swiftly sold below its bellwether 200-period moving average (red).

At the time of writing an ascending Fib line is providing support to price, but if the bitcoin chart does what it did during a similar (but smaller) previous correction, then $390 (Bitstamp) and 2300 CNY the 100MA could be the eventual target.

The market seems to be taking profit and not selling bitcoin out of negativity or for any negative fundamental reason. In fact, with the Core developers reaching consensus on Dr Pieter Wuille’s Segregated Witness proposal, we have the prospect of a simpler, more efficient Bitcoin protocol going into 2016 – SegWit (as it is called) also allows non-contentious changes to block size, which the Core devs intend to increase given that the current blocksize capacity is being hit almost daily. The XT escapade has become mostly irrelevant and the SegWit upgrade surpasses anything the XT hardfork potentially offered.

Summary

Although the 1-day 20MA has now been breached to the downside, this appears to be a large correction and not a return to the $220 support floor. Best to stay out of the market. We’ll get a clear signal in the coming weeks.

Bitfinex Depth Chart and Buy/Sell Volume

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Click here for the CCN.LA interactive bitcoin price chart.

What do readers think? Please comment below.

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Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
Image from Shutterstock.

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