Bitcoin Price Analysis: 5/26/2016

Bitcoin’s price continues forming an upward trend. It is approaching an important medium-term resistance line, where the direction could change to a downward one.

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Bitcoin Price Analysis: 5/26/2016

Bitcoin’s price continues forming an upward trend. It is approaching an important medium-term resistance line, where the direction could change to a downward one.

Will there be a turn to decline?

During the formation of an upward trend toward that key level, the odds are on the side of the current upward trend continuing.

That’s why the price is moving upward continuously, rebounding from key resistances.

BTC/USD price chart 1

However, as soon as Bitcoin’s price reaches the minimal correction target within the medium-term downward movement, the chances will be yet again equally split. The reason for that is that bears of a larger calibre could appear around $452. In that case, Bitcoin’s price will rebound, and stand a chance to form a downward trend. The necessary confirmation for a turn to decline is a disruption of the structure of the upward trend. The level of $444.5 was confirmed by the previous rebound. If you draw the diagonal channel, the key point can be found where it crosses the Fibonacci level 61.

BTC/USD price chart 2

In order for a chance for a turn to decline to maximize, Bitcoin’s price has to rebound from the level of $452 and form a turn at the level of $444.5. Otherwise, the odds will be on the side of an upward trend.

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