Yesterday’s session saw a notable improvement in the bitcoin market landscape, with the market continuing its prevailing near-term bull trend. The ‘slow and steady’ rather than explosive nature of the uptrend is evidence of cautious traders, with many a bullish hand bitten over the last few days chasing rallies which never really fully formed. Despite the positive signs, we still expect the bullish trends to fade and the market to correct on the downside in the near future.
February 3rd Bitcoin Trading Session
After spiking from a low of 211 in the previous sessions to 248, the bitcoin price held its high ground for some time yesterday as it threatened the psychologically important 250 level. This optimism gave way later in the day, however, when a number of short sellers brought the price down to 225. At press time, the price is still trending in a near-term bullish correction, hoping to break above the 250-255 support area.
What to Expect Today?
The bitcoin price is so far looking comfortable on its bullish run. The MACD (blue) sits well above the normal line and signal curve (saffron), the RSI is neutral at around 55 and is waiting to establish stronger bullish momentum above 60 and the 12 hour EMA sits well above the 26 hour EMA. This points to bullish sentiment prevailing in the market, though this may be short lived unless key resistance levels are breached.
We expect a downward correction to appear soon if the bitcoin price fails to break through the 250-255 area. If this eventuates, we expect a price reversal towards the 210 range, a level at which the double bottom at 165 is firmly in sight. If, on the other hand, the price breaks through the 250 - 255 resistance level, we see the potential for the current bullish sentiment to push the price all the way up to 275 - the next resistance level.
Conclusion (On Daily Charts)
Current Mood: Bearish
Moving Averages: Sell (4 Buy 8 Sell)
Technical Indicators: Sell (3 Buy 4 Sell 4 Neutral)
Do you agree or disagree with the predictions and why?
https://www.coinarch.com/Info/Blog?Page=2015/02/daily-bitcoin-price-update-3rd-february/
