Bitcoin Price Analysis: 5/18/2016

Bitcoin’s price is in a correction towards the downward trend. The most likely peak of that rebound is getting close. That means that soon a new development will be chosen by the market.

At which mark is the price most likely to undergo a downward rebound?

Bitcoin’s price has formed a short-term flat under a key resistance line. Whether the downward trend will continue or a turn to decline will form is dependent on the future reaction of the price at the key levels.

The key resistance line has descended a little bit toward $455. Several significant instruments are intersecting at that price, and they can influence the outcome of any trend. In case of a break through the diagonal channel, we can affirm that there is a movement of a larger scale than the whole downward trend. The crossing of the Fibonacci level 61 and the limit of the flat is creating a good resistance line for Bitcoin’s price. Thus, we can see that the peak of the rebound is likely to be around $455. That also means that the current movement is capable of evolving into a turn to growth.

Consequently, there are two potential scenarios which are mutually exclusive. There will either be a rebound from $455, or a fortification and turn to growth.