Bitcoin price slumped overnight. Markets are beginning to rear ahead of today’s Fed rates announcement. This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here . Not a member? Join now. Bitcoin Price Analysis Time of analysis: 12h00 UTC Wednesday Bitstamp 1-Day Candle Chart From the analysis pages of xbt.social, earlier today: Overnight, price sold off to support & resistance at the previous low (horizontal blue zone). Although the move was anticipated in yestersay’s analysis, it is a pity to see this development in the chart since it tests our bullish outlook to its lower limit. The prospect remains that the market will use the Fed announcement to continue advance, but traders should refrain from taking position until a direction is clear – possibly only tomorrow or on Friday. Although at its lower limit, a bullish outlook remains valid: A) 1day MACD remains above zero (magenta circle). B) 1day stochastics are falling away from maximum (blue circle), yet, are flashing divergence (blue dots) – something that often (but not always) happens at a reversal point. Over in the 1hr chart (right) we see a 20/50MA bearish cross-over but not a full valid MA signal – the 50MA only crossed below the 100MA several hours after the sell-off. Notice that the 20MA (green) is still descending toward the area of price action and there is unlikely to be any significant movement until it reaches this area ($595 Bitstamp). It is always advisable to stay out of the market around the time of important global news events and to enter the market once the chart indicates a clear direction of trend. Summary Bitcoin price holds above support near the low $590s. Today’s Fed rates announcement (scheduled for 19h00 UTC) should see the market gain volatility and, […]
