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After a continuous decline back in the beginning of March, Bitcoin’s price is now undergoing a period of tentative growth. Will this end up in a new, even sharper fall?
The first month of spring has passed. As was predicted, Bitcoin’s price underwent a downward rebound toward $400-390. The likelihood of that rebound was high, due to the price reaching a key level, while moving along an upward trend. After that, the market had to choose a new trend, and it needed a rebound to do that.
Bitcoin price has recoiled and stopped at another key level. At such points, some traders close their positions, while others open theirs, and the price tends to plateau.
The result is a “struggle” between traders for the fate of the future trend.
It’s important to understand which price lines are important for both the bulls and the bears.
It’s exactly at levels like that, one can track the traders’ reactions and make the most informed assumption regarding the future price development.
Bitcoin’s price has been staying around $390 (BITFINEX), more specifically it has bounced off it and started forming a flat-like upward trend. And while the trend was heading downward all the time, starting from $450, the bulls have finally taken the advantage at the $390 mark. The majority of the traders is not expecting the price to keep falling. But one can’t really speak about a certain growth either, given the uncertainty of the current trend.
Thus, the opinions regarding the next target can shift and the price can very well start falling again. But before that happens, the market will have to hold at the level of $390 and form a turn to decline. In that case, the price is likely to keep moving toward the larger-scale target of $360.
One can determine which part of the market is holding more power at the moment by looking at the long-term top level of $445. If the market fortifies at that level, there is a probability of the formation of an upward trend. That fortification will indicate the lack of interest from the Bears. After forming a turn, the next target for the market will be at $470, and the next one still - at $500.
Ultimately, the two key resistance lines right now are $390 and $445 (BITFINEX). The development of the situation depends on the market’s reaction at either of these levels. A rebound or a fortification followed by a turn: one of these scenarios is most likely to play out at one of those levels this month.
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