Bitcoin price continued advancing strongly and cleared $500 with minimal effort yesterday. Sunday trade has been mostly corrective, but there is no strong sign that the advance is over.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Bitcoin price has advanced beyond $500 across all exchanges and we now expect price to make its way toward $550 and react to this strong support and resistance level.
The current level of price, just below $525 (blue horizontal line), had acted as support and resistance during 2013 and 2014. We could, therefore, expect the market to grapple with this level before advancing to $550 (orange).
Like most price charts, the bitcoin price chart tends to retrace trending moves by 50%. The level from which such a price correction will occur remains to be seen. It may be that the past two days’ string advance warrants a correction from the current S&R level (blue), or else it may happen at $550 (orange) or $600 (red). Also plausible, is the possibility that the current move continues advancing (with minor corrections) all the way to $680 (purple) before a larger correction kicks in. Such a move will be both spectacular and cause chart symmetry to the price structure of May/June 2014.
Bitcoin price is above $500 but below $525 resistance. The market may grapple with this level and retrace, but we expect that advance could continue to at least $550 before a larger correction sets in. Despite long price candles, the indicators and trade volume do not support ongoing advance without a pullback.
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Bitcoin price charts from TradingView.
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