Bitcoin price continues trending higher and the bulls are in control. The proposition remains that it’s a speculative certainty that price will, eventually, strike out for $500 – can the market do it this time?
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
The BTC/CNY exchange charts are leading price into the resistance zone. Although the USD charts do not confirm the move, they tend to rapidly catch up when the market is gripped by rally fever.
There are no technical indications that imply that the BTCC chart, above, will definitely break through resistance, but this is often the case prior to a breakout.
To break above resistance, price must advance through the red zone. The zone’s upper boundary is drawn across the closing highs of late-December 2015.
Firstly, let’s acknowledge warnings of overbought conditions in the indicators:
1) The stochastics oscillator (top) has held at its maximum for two days and is currently diverging from price, as indicated by the red dot.
2) RSI (second from top) has entered a zone (magenta) from where price typically reverses.
3) MACD has reached its upper Bollinger Band and is also diverging from price’s new recovery high.
Taken in conjunction these indications warn that a price reversal is likely. However, we can see from the brief rally in the middle of the chart that these indicator conditions simply compound during a surging move higher. If a break above resistance is what will transpire, then we could expect price to target, at least, the 3150-3200 CNY zone circled in green. These price levels correspond to $495-$500 in the Bitstamp chart.
Substantial risk of downside reversal remains, yet, if it happens, the move higher will be interesting to watch – although treacherous to trade.
Bitcoin price pushes higher and we continue watching to see whether this is The One. The chart conditions do not preclude continuation higher and if the market wants to break upside resistance, this is an opportunity. A swift, clean break would be preferable, but can this market do what it must without slow self-torture?
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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