Written by Denis HarrisoncontributorReviewed by Cyril Gilsonformer editorBitcoin Price Analysis: 6/03/2016
Bitcoin is continuing its upward movement. The short-term upward structure can turn out to be a wave of a flat, which will be followed by a downward rebound.
Bitcoin is continuing its upward movement. The short-term upward structure can turn out to be a wave of a flat, which will be followed by a downward rebound.
Is the downward rebound over?
The minimal correction targets have been reached, so the movement is about to be decided. Bitcoin’s price has fortified inside a flat, at the level of $540, and an upward impulse followed. But Bitcoin’s price did not go beyond the weekly flat’s limits ($518-560). Hence, there is a probability of a continuation of that flat.
If that is the case, Bitcoin’s price is likely to rebound around $560, and form a turn at the level of $536.8, thus disrupting the structure of the upward movement, which has started at $518. Several instruments intersect at the $536.8 resistance line: the diagonal channel and accumulated trading volume. If the bulls hold the advantage at that mark, Bitcoin’s price will rebound and start forming a medium-term upward trend.
The upward trend will most likely remain intact, unless its structure is disrupted at $536.8.
