trading of bitcoins price rallied through resistance in the $240 / 1500CNY area earlier today & achieved a high $252 (Bitfinex) and 1578 CNY (BTC-China). During the past few hours,Retracement has returned price to earlier resistance for a retest accompanied by strong reverse divergence.

Price Analysis and Bitcoin Trading

The 1-hour chart shows that price reached the upper edge of the zone of contention between $240 and $250. At the moment, the market seems to be retreating to the level of the previous high at $247. Coincidentally (if there is such a thing in the market), the level overlaps with three moving average envelopes as revealed by the 4-hour chart…

 

…The return to the previous resistance – now turned support – is a deep retrace. There was no sign that the correction would pull so deep, else we could have taken profit at $250 / 1,578 CNY and doubled-up on the second run!