Bitcoin Price Analysis: 5/04/2016

Bitcoin has reached a resistance line, where a turn to growth can form. Will the downward correction end now?

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Bitcoin Price Analysis: 5/04/2016

Bitcoin has reached a resistance line, where a turn to growth can form. Will the downward correction end now?

Will there be a turn to growth?

After reaching the limit of the flat, the majority of traders enter the game and bet on a drop. Thus, either Bitcoin’s price rebounds or a fortification begins. A fortification is a signal for a turn, when a price does not return to the opposit limit, but rather undergoes a correction.

BTC/USD price chart 1

In case of a fortification, it’s plausible to assume that the advantage is with the bulls, but there’s still potential for one more confirmation in the form of a turnabout wave. After the fortification, a new upward wave is needed, which will break through the limit of the flat, forming a rebound and a repeated breakthrough. In that case, there is a good chance for a turn.

A similar scenario is needed for a downward trend. The level of $439, which is the bottom limit of the flat, will serve as the most likely point for a turn, provided all the aforementioned conditions are there.

BTC/USD price chart 2

A new trend will start at one of the limits of the short-term flat: $450.5 or $439.

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