Bitcoin price remains stable and sideways

The price of Bitcoin has been locked in a one-sided market for the past week. We wait for a decisive market move that will clearly indicate one direction or the other to more easily construct a clear pattern.

Bitcoin Price Analysis

Bitstamp 1-period chart (August 31, 22:04 GMT+8)

 
Price development has been very slow over the past week and let's take a step back and look at what the weekly chart looks like. The recent high of $320 has created a negative divergence from the highs of January 2014. Therefore, the subsequent decline has been sharp and we are currently seeing price trading below the 1-period 20-period moving average and the 200-period moving average.

In fact, the RSI reverse divergence mentioned above, pushing out such an important high point will more clearly mean that the subsequent upward sub-wave will reach a certain height in the chart.

On the xbt.social stochastic (above) we also see a blue dot divergence indication - meaning that the price is struggling to move downwards. However, let's take this indication with a pinch of salt, as it is not confirmed by any other indicator.

As you can see, the MACD indicator (bottom) has started to decline from the zero line and the price has gone below the 20-period moving average and the 200-period moving average. This seems to be a more important signal on the weekly chart. Despite the bearish pattern, the price continues to hover in a narrow range with no specific targets or dynamics to be found.

We remain on the sidelines until a clearly identifiable signal becomes clear.

It was never good brains that made me money, but patience. - Jesse Livermore

Summarize

The price of Bitcoin is becoming more and more solid in its sideways consolidation. With sufficient clues, we will predict an eventual larger price pattern.

Bitfinex order depth chart and trading volume display: