Bitcoin price was traded above yesterday's high in energetic trade today. The size of component price waves is both larger and more volatile than what we saw earlier this year, or even earlier this month.
Bitcoin Price Analysis
Price velocity is strong and the moves happen quickly. We may see a strong rally in the coming days and weeks. Resist the temptation to trade short while this advance is in progress – waves turn quickly and their distances to the upside is large.
If you currently hold an open position keep it open – while price holds above the 1hr 20MA green there is no need to close. Should price drop lower than the distance (specified in yesterday's xbt.social trade recommendation) below the 20MA, close your position. So far, this has not happened in most exchange charts.
On a breach of the 20MA, Buy-and-hold investors should return their allocation to 50:50.
Summary
Once the current correction plays out and price returns to advance, then the next defined target lies at $420, as illustrated earlier this week.
However, first seeing a retracement (correction) would be useful because it will give us a better sense of the size of waves we’re dealing with – at the moment we have no calibration, other than seeing a much larger wave than usual unfolding. If price can retrace deeply, to $340 and 2100 CNY, then we can be more confident of a large rally ahead.
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