The Bitcoin price continues to look weak. Volume has generally been light and technical indicators such as MACD continue to decline.
I modified this chart from my previous one (www.tradingview.com/v/355On4mu/) in a few ways:
1) Moved the descending portion of the triangle up slightly toward the candle wicks. This lengthened the triangle. I think this better reflected the price action.
2) Changed the time frame on the technical indicators back to a longer length. I had thought, perhaps, by shortening the length of time captured by the indicators that it might provide an early signal for a future price movement, but I think it created more noise than signal.
3) Moved the horizontal portion of the triangle up slightly from around $609 to $610. This reflected a little better where some of the candle wicks reached low prices.
My thought on the Bitcoin price remains more or less the same. I think the price is going to break down rather than up. The descending triangle, combined with weak volume makes it more likely than not that price will break lower rather than higher. Volume picked up slightly yesterday, but the overall trend is still very weak.
The price action and MACD make me think we might experience the mirror opposite of what happened when price dropped down under $400. Price and MACD were fairly flat for a while and then price turned up fairly sharply.
Now price has been pretty flat and MACD has crossed below zero. Previously when price fell under $400 MACD was low and crossed above the zero line. So, this raises the possibility that Bitcoin price could see a sharp drop in price.
I modified this chart from my previous one (www.tradingview.com/v/355On4mu/) in a few ways:
1) Moved the descending portion of the triangle up slightly toward the candle wicks. This lengthened the triangle. I think this better reflected the price action.
2) Changed the time frame on the technical indicators back to a longer length. I had thought, perhaps, by shortening the length of time captured by the indicators that it might provide an early signal for a future price movement, but I think it created more noise than signal.
3) Moved the horizontal portion of the triangle up slightly from around $609 to $610. This reflected a little better where some of the candle wicks reached low prices.
My thought on the Bitcoin price remains more or less the same. I think the price is going to break down rather than up. The descending triangle, combined with weak volume makes it more likely than not that price will break lower rather than higher. Volume picked up slightly yesterday, but the overall trend is still very weak.
The price action and MACD make me think we might experience the mirror opposite of what happened when price dropped down under $400. Price and MACD were fairly flat for a while and then price turned up fairly sharply.
Now price has been pretty flat and MACD has crossed below zero. Previously when price fell under $400 MACD was low and crossed above the zero line. So, this raises the possibility that Bitcoin price could see a sharp drop in price.