Bitcoin Price Analysis: 4/28/2016

The powerful growth of Bitcoin’s price was followed by a sharp drop. That downward trend was natural.

What explains the current drop?

It was mentioned earlier that Bitcoin’s price has reached an important long-term resistance line. A new direction is usually chosen in such points, or, alternatively, an old trend continues with more power, but only after a rebound. What that means, is that there was a good chance for a drop, and it happened. The last confirmation was the disruption of the structure of the upward trend, a point where the drop finally took place.

BTC/USD price chart 1

So far this short-term trend seems to be a rebound towards the long-term upward trend.

For a medium-term downward trend to begin, Bitcoin’s price will have to break through the level of $425-30.

For the upward trend to recover, the current fall has to stop, which will only happen after its structure breaks at the level of $450. That is the most likely mark for an upward turn, provided the price fortifies at it.

BTC/USD price chart 2

The short-term downward trend will continue, until the bulls win the advantage at the level of $450.