After a powerful growth impulse, Bitcoin has stopped within a short-term flat. Will the upward trend continue?
Is the upward trend over?
Bitcoin’s price has rebounded from a key resistance line of $518, which was identified earlier. The beginning of this flat tells us that a parity is establishing between the bulls and the bears. Consequently, the upward trend, which started at $440-50 is over, and now there is a rebound toward that entire movement.
The Fibonacci level 61, the peak of the rebound, and the diagonal channel - all those instruments have formed the bottom limit of the short-term flat at $518. That point is the most likely peak of a correction within the upward trend, which has started at $440. A rebound from the $518 mark has confirmed that. That means that a larger correction is likely to begin beyond that level, with a minimal target somewhere below $500. But for a more deep rebound to begin, the price has to at least fortify at that mark.
A new short-term upward impulse could start at $518, which is the bottom limit of the flat. If the price instead holds at that mark, it could provoke a downward movement.