Bitcoin Price Analysis: 5/23/2016

Bitcoin is forming a short-term flat between two key resistance lines. An exit from that flat could mark the beginning of a medium-term trend.

Which direction will Bitcoin choose?

Bitcoin’s price rebounded from the level of $442.2 yet again, thus proving its significance. A new level has formed below it, at $435.6. Because the price has stopped at the peak of the long-term correction, a continuation of the movement will mean that there is at least a new medium-term trend.

Consequently, the current levels of the short-term flat will most probably be a starting point for a new weekly trend. Right now the odds are on the side of a long-term structure. As we mentioned earlier, there was no turn to decline on a long-term scale. That’s why there is a chance of a rebound from $435. However, if the price fortifies and forms a turn to decline at that level, there will be a chance of at least a short-term trend forming.

The upward trend will most likely begin on the condition that the price fortifies at the level of $442 and forms a turn.