Bitcoin Price Analysis: 5/24/2016

Bitcoin’s price continues forming a movement near the top limit of the flat. The formed short-term trend could grow into the first wave of the medium-term upward trend.

The short-term trend is upward

The structure responsible for the formation of the upward trend, now that it has broken through the top limit of the flat at $442.2, will evolve into an upward movement of a larger scale, if Bitcoin’s price manages to fortify at that mark.

BTC/USD price chart 1

A fortification at $442 will mean that the bulls are holding the advantage. In that case, Bitcoin’s price will have a single most probable scenario, which is a formation of an upward movement of a larger scale, with minimal targets around $455. Such a scenario is completely dependent on the current structure of the upward trend, which has started at $435. We need to find the most probable point for a potential turn to decline. That is the level of $441. Several important instruments intersect there: the Fibonacci level 61, the diagonal channel, and the accumulated trading volume. All those could influence the traders’ decisions, and will consequently have an effect on the graph.

BTC/USD price chart 2

An upward rebound could happen at the $441 resistance line. Alternatively, Bitcoin’s price could fortify and drop to the bottom limit of the flat, which is $435.6.