Bitcoin Price Analysis: 5/19/2016

Bitcoin’s price, unable to form a turn to growth, is continuing its downward trend. That movement is approaching a long-term resistance line, from which it may rebound up.

The long-term correction is continuing

After breaking through the key level of $455, Bitcoin’s price could not fortify it. The bears were holding the advantage, which led to Bitcoin’s price falling and fortifying below that mark. The downward rebound scenario has played out.

Bitcoin Price Chart

The level of $455 remains a point where the downward trend, which has started at $460, could be broken. The downward movement is part of a long-term correction. Thus, we should find an important target, from which Bitcoin’s price could bounce up, because there was no turnaround on a long-term scale. Several important instruments are intersecting at the $440 mark: a diagonal channel, and a moving average 55, at which the average 5 has been fortifying from March till April. Two scenarios are possible at that level: continuation of the long-term upward trend, or formation of a turn to decline.

Bitcoin Price Chart

Right now the odds are on the side of a long-term upward trend. That’s why there is a chance of a rebound from the $440 resistance line.