Bitcoin Price Knocking at $750’s Door

June 16, 2016 18:23 UTC

The bitcoin price chart is showing us what we want to see: steady advance with reasonable corrective pauses. $700 has been strung up and left behind. Bitcoin price wears its new boots like a determined Sandor Clegane.

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.

Bitcoin Price Analysis

Time of analysis: 14h00 UTC

BTCC 1-Day Candle Chart

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

Bitcoin price has surged through $700 and touched $750 in the most popular USD exchanges. The OKCoin 3Month futures contract hit near $850 during early trade, and – soaring way above them all – the CNY exchanges are approaching a resistance zone near 5500 CNY (blue zone in the chart above). The equivalent USD level is around $900 (Bitstamp).

There is no reason, whatsoever, to call a top for this advance. Yet, prudent traders should take partial profit at defined levels such as significant support and resistance or Fib extension levels. It depends on your method. At xbt.social, for example, we do not concern ourselves so much with the potential targets of price, but rather focus on the behavior of moving averages at a wave top. The current open trade at xbt.social was signaled at $694 and will close at approximately 80% of the height of the current wave.

Even so, it can be useful to identify potential reaction zone – which may end up being reversal zones – using simple technical analysis tools. In the chart above, some self-evident trendlines (blue) above and below price show the likely range of ongoing development of price during the coming months.

The horizontal resistance zone (near $900 and 5500 CNY) should see reaction similar to $680, however, with volatility increasing below the surface, the correction may be deep – even though it will not necessarily mean the end of advance.

Summary

Bitcoin price conquered $700 with ease and must now grapple with $750 (Bitstamp). The advancing wave looks formidable and may thunder to tremendous heights. However, let us remind ourselves that we are witnessing a large rally two month prior to the actual halving. Price may simply continue advancing for several months, but there is also the possibility that this is merely an initial wave in a series of large price waves. Hence, a fair-sized correction could unfold from below $1000.

Bitfinex Depth Chart and Buy/Sell Volume

Large sell orders provide liquidity for eager buyers.

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

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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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