Bitcoin Price Rally Delayed
Bitcoin price faked advance, and now proceeds to retest consolidation zone near $570 (Bitstamp).
For traders to get themselves in profitable trades they only need to follow a method – apply required discipline to stick to their method. And then, evidently, sometimes you have to defy the method! What life.
At xbt,social we saw powerful bullish signals forming in intermediate timeframe charts, during the past week, but decided on $600 as the trigger to entry. Precisely because the bitcoin market fakes-out prior to advance.
The chart signals have been out of sync during the past week – with larger timeframe indicator buy signals not being confirmed by their smaller timeframe companions making concurrent signals.
If the market was rushing into a rally then it would have attacked that decending 4hr 200MA with more energy. Historically, the larger advancing moves yield profit above the 200MA (magenta arrows).
The buyers have temporarily lost will power and many may be turning to selling. This is not yet the advance and traders need to sit tight for a few days.