Bitcoin price keeps dropping

bitcoin price cryBitcoin Price has dropped to a new decline low in a fierce sell-off across exchanges coinbase from europe.  During the overlap of the late US and early Asian trading session price began falling from levels in the high $260s (1, 670 CNY) to the low $250s (1, 508 CNY) within an hour. At the time of writing the average USD price is $230 and BTC-China is at 1, 420 CNY.

This analysis is provided by xbt.social with a 3 hour delay. Read the full analysis here.

Bitcoin Price Analysis

Time of analysis: 12h00 UTC

BitFinex 4-Hourly Chart

Bitstamp_bitcoin_price_chart_d1_13Jan2015xbtBy 12h00 UTC, the BitFinex chart had made its way to the bottom the Fib channel and dropped below it to 6 – just short of the target of 0 posted in yesterday’s analysis. The decline is ferocious and has the hallmarks of being in its terminal stages as panicked Bitcoin holders sell-off with abandon. The price gap in the declining wave is only visible in the 4-hour chart (by Tradingview), but it has often happened in the past that these anomalous gaps get filled to precision by subsequent corrective trade.

As the US trading day begins, we could expect additional waves of decline as Bitcoin holders wake up to long red candles on their charts. The “psych” level of 0 remains unchallenged, and it’s possible that price may spike below it to as low as 0 in some exchanges.BFX buysell volume 13jan2015 ina chart is 1, 200 CNY although 1, 000 CNY seems more appropriate. At this stage of the decline there is no point in stoically trying to call the bottom – we can only stay out and observe as the volatility ramps up, and large buy orders start getting triggered at discount prices.

Bitstamp Dailly Chart

The daily Bitstamp chart is cluttered at this level of zoom but shows that price found support at a Fib fan line as it struck a low near $216. This level also corresponds to a 4.618 Fib extension of the first wave of the current subwave down.

To the left of price action a 2.618 Fib extension level of the first wave down from the November high shows the possibility of a $160 low in this chart.

Summary

The market is reeling as Bitcoin price tumbles lower. Several waves of decline have followed in close succession all day, and it seems a few more are due.

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