Bitcoin price held above support despite the potential for a large sell-off earlier today. Price was sold down to a supporting level in the BTC/CNY charts but vigorous buying prevented further decline..
In what would have been the juncture from where bitcoin price usually sells off,price maintained position above support, today.
The expected targets at the Fib lines highlighted in blue and orange remain unchallenged. They may still be targeted during the coming days, especially if price fails to advance above the red 200-hour moving average in the coming days. Straight down the Fib lines currently intersect with $315 and $290 in the Bitfinex chart.
Trade establishing price above the 200MA will diminish the chances of additional downside - more so if the green 20MA can cross above the 200MA in the process.
In the case of the latter outcome, the compression evident in the MACD indicator throughout the past 12 days' price pattern implies a strong push to$370 (1.618 Fib extension target) or $415(2.618)
Trading is a game of probabilities. You don’t have to be right every time. You just have to follow your rules. - Vadym Graifer
Summary
Bitcoin price is not yet out of the danger zone, and a return to decline - this time to waiting support - may still happen. The critical 200MA is not far above price and if the market can push price above it, the chart condition will become more bullish. First, we have to see if the bulls can commit to the task.
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