A turn to growth did not happen. In the medium-term scope the sellers had an advantage over the buyers. Is this the star off a decline?
The key resistance level was at the $417 mark. However, during the course of the day a new resistance formed at $418.6. This level became the key one overriding $417 and was responsible for the structure of the entire upward trend, which started at $413.
After the break through the resistance of $418.6, fortification on it and the formation of the downward movement, the trend’s structure was disrupted. In a case like this, it’s much more likely that the trend is moving in the opposite direction of a higher order. In the end, the price has reached its minimal target, which was at about $414.
It is too early to speak about a turn to decline in the medium-term scope, but if this potential holds until the medium-term level of $409 and the sellers fortify on it, then the most probable outcome will be a downward trend with the first target at $390.
There is also the possibility of a bounce off and the start of an upward trend of a higher order. But for that to happen the buyers will need to fortify at a new level of $419.5.
In which case, the BTC/USD price will likely go upward until a minimum of $423-24.
We’ve mentioned earlier that the most profitable situations are best found at key resistance levels. It is at those points where a new trend forms or the old one gains more momentum. That’s why one should look closely at how will the price behave at the key levels of $409, $414 and $419.5.