The price has bounced off an important level without turning about. Is that a signal of a continuation of the trend?
Will the upward trend continue?
Without holding at the level of $416, Bitcoin’s price has once again followed the ongoing trend.
The Bulls are holding the advantage so far. Until a turnabout happens at the $416 mark, the upward trend will continue.
Why is the $416 level so important? If you analyze the upward trend as a whole, including its rebounds, you’ll see that the peak of the new rebound is exactly at the point of $416. Hence, it’s the most profitable price for Bullish deals during the current rebound.
It’s at points like this that most of the traders place their deals. If the buyers were a minority, the following scenario would most likely happen:
Bitcoin’s price would have held at a level profitable for the Bulls, which would signify their weakness. After that a turnabout would have happened.
That kind of scenario is what’s necessary for a turn to happen. The price has to enter a zone which is profitable for the buyers - $416, then stop at that leve,l and form a turnabout. The minimal target for such rebound of a much larger scale is $409-10.
For the upward trend to continue, the price has to enter a zone profitable for the Bears and fortify there, around $418.
In case of a formation of a turn the minimal top target is $422.
Hence, everything right now depends on the traders’ reaction at the key levels of $416 and $418. The behavior of the buyers and sellers will indicate the further movement of Bitcoin’s price.
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