Bitcoin Price Analysis: Bullish The Only Option?

May 6, 2016 18:13 UTC

Bitcoin price continues higher after Craig Wright has excused himself from the ecosystem. Bullish sentiment is riding high toward the advance pivot at $470.

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Bitcoin Price Analysis

Time of analysis: 15h00 UTC

OKCoin BTC/USD 4-Hour Chart

From the analysis pages of xbt.social, earlier today:

Bitcoin price is pushing higher.

It seems that the bullish sentiment is pervasive and that there is no other option but to be long in this market.

Now that Craig Wright has abandoned his media-forced claims of being Satoshi Nakamoto, of course, the market should feel some relief and express it in the chart.

We know that $550 is an upside target, but some concerns remain:

1) Volume remains low

2) $470 is an upside barrier that has enforced its dominance for two years

3) Advance is now plausible at the larger timeframes, but why has the market not retested lower support?

The advice to traders and investors is to wait for price to advance beyond the resistance ceiling at $470. Above this price level price has free range to $550 and then the primary rally target of $690 – a reasonable production price for bitcoin after the June/July block reward halving.

Summary

Bitcoin price was teetering into decline as uncertainty about a Satoshi Nakamoto claim hung over the ecosystem. Many traders become upset at the idea that the market may need to correct lower before conquering resistance at $470, and this analyst maintains this is a possibility. However, bull-headed advance seems a foregone conclusion when looking at the chart. Traders and investors should consider $470 – a long-term resistance level – as the confirmation of advance to $550.

Bitfinex Depth Chart and Buy/Sell Volume

Click here for the CCN.LA interactive bitcoin-price chart.

What do readers think? Please comment below.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
Image from Shutterstock.

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