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Bitcoin Price Analysis: BTC Dumps To $8k As Market Trembles

After much anticipation of an explosive move, Bitcoin has finally chosen a direction for the short-term dumping through the asymmetrical triangle support. Current market price rests on $8,100 support but looks poised to drop further.

Bitcoin 1-Hour Price Analysis

bitcoin chart

On the 1 hour chart for XBT/USD, we can see the recent break-down that has taken place. This movement resulted in price levels crashing through the larger asymmetrical triangle support clearly visible on the daily chart below. The current market price finds brief rest-bite as price levels find support at $8,100.

There doesn’t appear to be adequate buying pressure entering the market at $8,100 leading me to believe that Bitcoin will drop further to my predicted target of $7,200 as stated in my previous analysis on Bitcoin here.

POC (Point of Control) sits just above the current market price on the 1 hour indicating price action is going through a brief period of short-term consolidation. This will essentially result in price action trading sideways for a few days, and selling pressure gradually building up again ahead of another dump over the coming days. Key support lies between $7,400 and $7,150, and will likely be an area in which Bitcoin bounces and re-gains momentum to the upside.

1-Day Price Analysis

bitcoin chart trading

On the 1 day chart for XBT/USD, we can see the break-down through the asymmetrical triangle clearly. The breakdown took place at $9,400 and was fuelled by a large red volume candle. Current market price rests on a strong support line, however there doesn’t appear to be enough buying pressure as the most recent daily candle is still very much red in order to see any form of a bounce.

I’m anticipating another dump through $8,200 down to between $7,150 and $7,400 over the coming days. I will then be monitoring how price action behaves at this key support range to determine the likelihood of a bounce play. RSI has turned completely oversold on the daily chart for the first time in the last few months. This means if you’re looking to re-enter into Bitcoin you should be paying close attention over the coming weeks for an entry signal.

It’s crucial to practice proper risk management such as scaling into and out of the market, using sensible stop losses and not overtrading during times when selling volume is in control of Bitcoins short-term price action. We’ve all seen how brutal the affect of bearish pressure can be within a short time frame.

Do you think Bitcoin will drop to $7,200 before potentially bouncing? Please leave your thoughts in the comments below!

This article is strictly for educational purposes and isn’t to be construed as financial advice.

Images via Shutterstock, XBT/USD charts by Tradingview

The Rundown

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Bitcoin Price Closer Than Ever to $600 as Bull Run Continues

Source: bitcoin

Bull Market Bitcoin

Bitcoin has done it again. In just a matter of days, the world’s favorite virtual currency has shot up in price by another $40 USD and is now hovering at around the $579 USD range at press time.

Also read: Bitcoin Price Finds Stability After Massive Bull Rally

Bitcoin Continues to Rise

As several fans and analysts proclaim, this rally is undoubtedly huge, and could likely spark a whole new era for bitcoin and digital currency. We are now just around the corner from $600 USD, and many feel that bitcoin could easily reach $680 USD within the coming weeks.

Initial reports claim that 2016 is fast becoming “bitcoin’s year.” According to blockchain.info, the currency has added approximately $1.2 billion USD to its growing market cap, and the recent drop in Ethereum to USD trading may have a lot to do with its rising stance. Bitcoin is now at  its highest in almost two years, and things are still looking up.

Despite the good news, however, some are arguing that traders should remain cautious.

As one source explains, data is suggesting that bitcoin may indeed be reaching the end of its present price spike and that the “price has not yet left the area of recent correction.” This means that bitcoin’s price is not presently showing clear signs that it will be moving forward again right away.

Furthermore, it is stated that investors should wait a little longer before throwing themselves and their funds directly into the growing bitcoin bin:

“The bitcoin price is pushing higher, but speculators should be cautious of the current position of price… The current risk is that today’s surge could only be an ending component.”

While words of caution like these should always be considered, it’s a little difficult to believe fully that things will end where they are. Such words have been thrown into the open air since bitcoin began its initial ascension last November, and it has remained relatively tight since then.

Sure, there have been a few blunders along the way — $15 here or $10 there — but bitcoin always manages to pull itself back together, and the loyalty of its fans has been repaid more often than not in recent months.

Some words of advice – don’t confuse caution with fear. Sitting around and doing nothing while others take action and reap the rewards is no way to live. That said, perhaps rushing in head-first isn’t exactly the best approach either. Give yourself time, and see about exploring ways around any possibly dangerous zones.

Will we hit $680? Post your thoughts and comments below!

Images courtesy of Globe Advisor, Bitcoinist.net.

The post Bitcoin Price Closer Than Ever to $600 as Bull Run Continues appeared first on Bitcoinist.net.

Bitcoin Price Closer Than Ever to 0 as Bull Run Continues

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The BitcoinAverage Report: The Boring Week of Bitcoin

Source: bitcoin

Financial Markets

BitcoinAverage, April 12, 2016 — The price of bitcoin had little to show last week relative to the range of price movement mostly sideways trading, which hit $423 on the upper limit and $415 on the lower end. 

This article was provided by the Vanbex Group on Behalf of BitcoinAverage.

The Weekly BitcoinAverage Report

The most exciting activity was a run up to $424 on April 8th, applying counterweight to the previous week’s low of $416.

Later, a sell-off to $412 after failing to break to break up wards ruffled some feathers.

The low shook out the feeble hands, turned traders bearish and tossed off weak bulls as many had been expecting a final break of $425.

Seen above — a 12-hour chart on Bitstamp — it shows how little activity there has been since the $389 dip in first week of March.

Clearly, $424 has proved itself a hurdle with three consecutive failed attempts to break the mark. There is optimism however, as all the low dips have respected increasing lows establishing a rising trendline, which included this week’s $412 low on Apr. 9.


The one-day chart of exponential moving averages (EMA) shows support by both 30- and 50-day EMA lines.

The pattern highlighted in the rectangle resembles a squeeze before a pop in either direction, similar to that seen from Jan. – Feb. 15.

The price could break out to $440 if EMAs continue to support, otherwise, a failed break could fall to $400 or below.

Furthermore, the direction of a breakout is not clear on one-day charts with simple moving average (MA) lines.

It seems there is no real support from 30-, 50- and 100-day MA lines. The whipsaw (up, then down movement) seen certainly adds to uncertainty.

A price fall is possible with projections slated at $375, at worst.


The one-week chart above best captures the state of traders’ ambivalence at this price level.

Highlighted areas (1) and (2) are similarly large corrective patterns in the middle of directional trends and coincidentally occur at the same price level. There is a lot to be said about this level, as it also matches with a 38.2% Fibonacci retracement. It extends from a $152 low on Jan. 12, last year, to the $504 high by Nov. 3.

The chart above shows that Fibonacci levels extend across the whole bear market since the $1,163 all-time high in December 2013 up until the point the price fell to $152 in January 2015. It emphasizes an imminent break out, without revealing much about direction.

Elliott Wave theory puts forth one of 2 high probability alternatives. The theory assumes the market has been in a corrective state since the high of $1,163.

The illustration on the left, above, represents A as a $152 low from the high, and B as the current top at $504. It can also be incomplete hence leaving room for a higher B. Depending on what form this correction takes, the market could fail to break and head down to C.

Alternatively, on the right, it could continue on its bull run from  October 2015 to a high B, close enough to the all time high at $1163. Thus, B would reach upwards of $650, with an allowance for up to $1000.

Below is a better illustration on a price chart.

  • In Black is the correction that happened from $1163 to $152
  • In Blue is a similar corrective pattern but on a higher fractal. This would mean $504 is B top
  • In Red is a different corrective ABC, with a B top that is not complete yet. Target is as high as $1000 and $504 will be surpassed in a continuation trend

With the upcoming price halving in July, speculation is leaning to a continuation of the trend, at the very least up to $650. The convergence of events makes it a risky trade, with a high potential payoff. The block size debates seems to have flamed out and core developers are churning out updates to Bitcoin core and testing Segregated Witness. All of a sudden, Bitcoin is looking stable both on the protocol development front and price wise.

About BitcoinAverage:

BitcoinAverage.com is the first aggregated bitcon price index that was initially launched in August 2013 with a goal to aggregate rates from all available Bitcoin exchanges around the world and provide a weighted average bitcoin price.
As of March 2014 we have over 30 exchanges integrated and are directly serving over 50,000 users monthly plus providing data to numerous other websites and resources.

What do you think will happen to the bitcoin price in the near future? Let BitcoinAverage know in the comments below!

Images courtesy of BitcoinAverage

The post The BitcoinAverage Report: The Boring Week of Bitcoin appeared first on Bitcoinist.net.

The BitcoinAverage Report: The Boring Week of Bitcoin