Bitcoin Price Analysis (Week of May 15th)
A medium-term flat, which has formed on Bitcoin is a result of the price’s reaction to the long-term level of $450.
A medium-term flat, which has formed on Bitcoin is a result of the price’s reaction to the long-term level of $450. We’ll be able to determine which side of the market holds the advantage by looking at an impulse, which is expected to happen at one of the limits of this sideway movement.
When will the flat end?
As long as Bitcoin’s price stays between two significant levels, the flat will continue. Such movement is usually a sort of balance between the bears and the bulls. A flat always forms between two levels which are responsible for the future trend.
There was no turn to decline on the medium-term scale. That’s why the odds are on the side of an upward trend. A new mark, from which a new rebound is most likely, is easiest to find by synthesising important resistances. Such resistances are the level of large accumulated trading volumes around $449 and an exponential average 90 on a 4-hour graph. The earlier average 20 has fortified on this new sliding average. Thus, if the price reaches the level of $449, breaking the average 90 by the average 20, there will be an imbalance. In that case, if the bears hand the advantage to the bulls again, Bitcoin’s price will undergo an upward rebound and the flat will continue. A fortification at that level will indicate that the advantage is lying with the bears and a downward trend is more probable.
Similar scenarios are to be expected at the top limit of the flat, which is at $463.
As long as Bitcoin’s price does not disrupt the current balance between the bulls and the bears, the flat will continue. That flat will end, if a fortification and a turn happen at its limits, which are either $449 or $463.