Written by Denis HarrisoncontributorReviewed by Cyril Gilsonformer editorBitcoin Price Analysis: 5/31/2016
MagazinePublishedMay 31, 2016
The movement of Bitcoin’s price continues within the limits of the weekly flat. A new upward surge could be a false one, and the price will return back inside the flat.
The movement of Bitcoin’s price continues within the limits of the weekly flat. A new upward surge could be a false one, and the price will return back inside the flat.
What is needed for the growth to continue?
The movement, which is forming at the level of $518, could turn out to be a wave of the flat. Such a probability will be there until a fortification happens.
In order to determine which side has the advantage, we need to analyze the nature of Bitcoin’s price movement. The continuation of the upward trend will become the most probable after the scenario of a continued weekly flat becomes unrealistic.
For that, Bitcoin’s price has to break through the top resistance line of $557.5. After that, the structure of the upward movement has to remain intact. The maximum target for that rebound will be at the crossing point of the diagonal channel and the average 30. If the price rebounds from that level, it will indicate that the bulls are holding the advantage. In that case, the odds will be on the side of a continued upward trend.
In case of a disruption of the structure of the upward movement at the intersection point of the diagonal channel and the average 30, Bitcoin’s price will most likely return to the bottom limit of the flat at $518.
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