Bitcoin price has reversed from a bull-trap as the reality of a hardfork with the potential to destroy coins and time locked transactions persists. Nevermind the asset damage, the fundamental consensus breach of Classic(TM) is devaluing Bitcoin and incumbent businesses every day that the threat persists.
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Bitcoin Price AnalysisTime of analysis: 15h30 UTC
OKCoin 3Month Futures 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
The past two days' analysis had acknowledged the bullish activity in the chart but warned that a reversal was imminent.
Yesterday's push to the vicinity of the corrective high of late-February caused RSI to reverse diverge to both the said high, as well as the February 21 wave top. This reverse divergence should cause a deep retracement and, eventually, a new decline low.
The OKCoin 3Month futures contract for June opened yesterday, and immediately shot price upwards by $20. This is, no doubt, an indication of the market's anticipation of a block-reward halving rally before June 25th. However, all of those long positions are currently underwater. Classic(TM) must either submit to declaring a new altcoin or see bitcoin sell-off to all-time lows in the face of a potentially failed hardfork that could destroy money.
Until pop-cargo-cultist Andresen relents, the only sane advice is to sell bitcoin and park value in US dollars.
SummaryBitcoin price reversed sharply as per analysis presented during the past two days. The return to decline is expected and the reasons for the selling can be squarely laid at the doorstep of negative social mood toward Bitcoin and its developers. The doubters will soon have their wishes fullfilled in ClassicCoin – a guaranteed failure of non-consensus and speedy centralization. Despite increasing fees (now 0.0005 for next-block confirmation), Bitcoin network usage continues growing strongly.
Bitfinex Depth Chart and Buy/Sell Volume
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Disclaimer
The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Bitcoin price charts from TradingView.Image from Shutterstock.