Price Compression Continues to Strangle Bitcoin as Indecision Grips the Market

Bitcoin did see a slight pickup in volatility immediately following the Labor Day holiday in the US, although more recently price has once again fallen into a contracting range. We’ve seen this play out before, so at least we have an idea of where we are going.
Seeing as though there hasn’t been much in the way of noteworthy price action over the past week, we want to shift gears slightly in order to get a better idea of where we sit with regard to the near term cycle that is playing out. On that note, today we are showing our normal longer term chart to put into context just how stagnant the market is getting, and we also present an even more basic chart that focuses solely on volatility (or the lack thereof). Both of these charts will help us suss out the shorter term details while maintaining a prudent longer term view of the market.
To commence this week’s analysis, firstly, we want to view and analyze the 3-day chart below that we have been watching for some time. Notice that price has broken above the descending channel that has been intact since June, as well as the fact that price is now above the 38.2% Fibonacci retracement level (a bullish indication). Also, note how the 200-period SMA is still picking up steam to the upside while the A/D line steadies at elevated levels, and the price is still well above both the short and medium term uptrend lines.

This post was published at Coin Telegraph on 2016-09-19.