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?
Time of analysis: 15h00 UTC
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.
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.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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Last modified: May 9, 2016 17:07 UTC