Bitcoin price is intercepted by the moving average and the market is expected to fall gradually

Just when it looked like Bitcoin prices might drop to new lows, once again, gold was pushed higher; the dollar was actually strengthening, oh, the yuan was depreciating…both the push up and the pull down showed extremes. As some only expect the best or the worst, Bitcoin traders are left with more uncertainty in an indecisive market.

Bitcoin Price Analysis

Bitstamp 4-hour chart

The price direction is unclear. This is a futures chart. It shows what is causing the panic sentiment in the chart relationship between the RMB and the US dollar.

BTC China's uptrend has been stopped by resistance from the 1-hour 200-period moving average. The moving averages' path seems to be reversing at the moment, and we expect the market to gradually fall after the sell signal is given. This morning, the People's Bank of China - stated that the RMB will depreciate by a few points again "at once", not as much as on Tuesday, maybe that's why the RMB exchange did not react as violently as it did earlier this week.

The Bitstamp chart has formed a regular ABC correction pattern, which means that the decline may resume. However, it has not yet reached the 200-period moving average, but Bitstamp has been a relatively slow exchange to react to both rallies and declines since the beginning of this year.

If we see a clear sell signal, we can choose to go short briefly. Likewise, if the price breaks above the 200-period moving average on the hourly chart, that would provide us with a signal to go long.

Remember, the wise speculator always maintains sufficient patience and cash reserves. - Jesse Livermore

Summarize

As is generally recommended in these situations: when in doubt, get off the exchange. Just when the one-minute price chart looks like it’s heading for a scary new low, and then a strong bounce by Chinese players pulls the price to a lower high – oh no! It’s reversed again. Bitcoin charts tend to present a chaotic scene with no clear direction for market participants. There is nothing to do at this point until we can confirm the general direction.

Bitfinex Depth Chart and Bid/Ask Volume Monitor: