Written by Denis HarrisoncontributorReviewed by Cyril Gilsonformer editorBitcoin Price Analysis: 5/27/2016
MagazinePublishedMay 27, 2016
The short-term upward trend is becoming medium-term, and Bitcoin’s price has reached one of the last year’s maximums as a consequence.
Bitcoin has continued the long-term trend with a powerful impulse.
The short-term upward trend is becoming medium-term, and Bitcoin’s price has reached one of the last year’s maximums as a consequence.
What were the reasons for that growth?
The $452-55 resistance has become a key point during the selection of a medium-term direction. The formation of trends of any size happens when large-scale movements connect with smaller ones. There are points where the movement grows from a small-scale trend into a large one.
That is what happened at the level of $452-55.
Bitcoin’s price has reached a historical maximum, which could also significantly influence the market. The next significant target is $500, but to reach that level, the structure of the trend has to stay intact. Otherwise, the price is likely to return to a medium-term flat. As long as the trend’s structure is not disrupted, the upward movement will continue. The most likely point for a turn to decline is at the $466 mark. There are several instruments which intersect at that level: the average 18, at which this powerful upward impulse has fortified, the peak of the last rebound, and the Fibonacci level 61. All these could influence further development of the movement.
Bitcoin’s price situation could change at the level of $466.
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