Bitcoin Price Analysis: 5/16/2016

Bitcoin is undergoing a correction toward the upward trend. The price has approached an important resistance line, where a turn to decline could form.

Will the upward trend continue?

The level of $455.6 is important because several signals, which are responsible for the structure of the movement, intersect there. The first one is the sliding average 55; the crossing of that average means that the current movement is larger than the previous upward trend, hence it is not its subwaves. The Fibonacci level 61 is used by many traders as a level of correction. A large volume near $456 is also a support level of the upward trend.

Thus, the structure of the upward trend will remain intact, until a number of factors align which will indicate that there is another movement with a higher potential. Consequently, until a fortification and a turn form at the level of $455.6, the primary trend is upward. If that trend has the support of the majority of the bulls, the price will rebound from that level and keep going up.

The $455.6 mark is a critical point for a rebound. A turn to decline could form at that level.