The minimal target of the upward trend has been reached. Bitcoin’s price is in rebound before a new push.
What direction will Bitcoin choose?
The upward trend didn’t follow through, but despite that, Bitcoin’s price has still reached its nearest target. The level of $418-19 was a peak of a bearish rebound within a larger scale trend.
Movements like these are usually followed by a rebound towards the larger structure, which in our case has started at $403. The peak of that rebound is going to be around $410.5, where Bitcoin’s price may suddenly stop and pick a direction.
That’s why for a full-scale turnabout to happen, the price has to break through the $410.5 line, because that’s the most likely point for buyers to make their move. Then the price has to hold at that level and form a turn. If that happens, the next target will be $404.5.
For the upward trend to continue, Bitcoin’s price has to enter a zone, which is profitable for bulls, and fortify there. That’s the level of $418.6. In case of a well-formed turnabout, Bitcoin’s price will be able to reach $423.5.
The key resistance lines, which are the most likely ones for a change of trend, are $410.5 and $418.6. One should take these levels into account when deciding upon long-term positions.