Recently, Bitcoin surprised market participants by falling away from the target and entering into a strong decline that brings prices below $260 and 1600 CNY to targets that were discovered last week: 1500 CNY and $240. People were notified by the signature xbt.social MA sell signal along with a wave pattern leading up to decline immediately assumed a familiar shape.
During the last minute, a signal was emitted by a 15-minute chart and the decline quickly dropped through earlier consolidation level at $260 and 1600 CNY and fell further to support near $248. If a four-hour candle closed near $250 that day, it would have resulted in a decisive divergence between the price and the indicators involved. Meanwhile, there will be a further case at the 1-day timeframe during which the divergence process is indicated by MACD, RSI and the slow stochastic.
Meanwhile, a point of concern is that 50MA was about to cross the 200MA red mark. It indicates a bearish signal which could witness further price decline if the market acts on this signal. A decline below the $250 mark will bring forth all kinds of selling behavior as the Mas follow lower only after the other. If the $250 marks held at close, it may be a while before the MAs get the alignment which precedes a great directional move. For now, people need to see where the decline finds its support. The most likely levels of support are $220 and 1350CNY.
Many in the current market were looking for completion of a move to mighty targets at 1700CNY and $275 mark. It was being expected after Bitcoin price decline resumed with a vengeance. With the beginning of the European session, the price started dropping away from its upward-moving support levels and declined to $240 and 1500 CNY, with the start of the US session.