Bitcoin Price Analysis: 4/07/2016

The uncertain growth of Bitcoin’s price has provoked a short-term decline. What is the strength of that decline and for how long will it stay?

Another downward correction?

The downward movement scenario has played out. That movement was short-term in relation to the medium-term upward trend, and that explains why it is a rebound. Bitcoin’s price has bounced off the medium-term level, where large trading volumes have accumulated, thus confirming the rebound assumption.

Bitcoin Price Chart

The advantage is being held by the bulls within the medium-term scope. The upward trend has been holding since $406.6 and there has been no fortification and turnaround in favor of the bears so far. However, if Bitcoin’s price starts fortifying at the level of $417.8 and forms a turn, a drop towards the starting level of the current upward trend is most likely.

Bitcoin Price Chart

For a more certain continuation of the upward trend the bulls will have to fortify at the level of $423.4. A new stop may happen at the medium-term level of $427.

Bitcoin Price Chart

It’s too early to speak about a turn to decline. For a more certain signal, one has to watch the way price reacts at the level of $417.8.