Bitcoin Price On A High Tension Wire

Bitcoin price is pushing higher once again but the market is struggling to make a new high since last week. Could this be the final push to resistance?

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Bitcoin Price Analysis

Time of analysis: 15h00 UTC

Bitfinex 1-Hour Candle Chart

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

The exchanges saw a bout of increased buying between 12h00 and 15h00 UTC when the bulls pulled price out of its ongoing two-day slump. At the time of writing the push has not produced a new high (since last week) in any of the exchange charts – with the exception of a nominal new high in the BTCC chart.

The upside level to conquer is at $470 (Bitstamp) and 3000 CNY, shown in red in the 1-hour chart.

Establishing trade above this long-term resistance layer remains the market’s final obstacle to opening advance to a new 2016 high. The buying above this zone should be strong to $500, where a price reaction may temporarily correct the advance, and then to $550 – a primary advance target.

If the market fails to achieve a new recovery high today, then the implication is that today’s push higher is part of an ongoing correction and that another downward correction is due prior to an attempt on upside resistance. If, however, price drops below the rising local trendline (blue in the 1-hour chart) we may see a larger correction, as explored in last week’s analysis.

Summary

Traders would be prudent to wait for the market to either establish trade above the resistance zone – or below the rising trendline support – before opening a position.

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.

This post was last modified on 09/05/2016 17:07

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Venzen Khaosan @venzen

Market analyst and Open source developer with a keen interest in blockchain technology, consensus mechanisms and the decentralizing effect. He has found a solution to the PKI mechanism. Email me to discuss.

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