Bitcoin price broke above its narrow 4-day trading range. A strong resistance zone waits a few dollars above price.
Time of analysis: 16h00 UTC
From the analysis pages of xbt.social, earlier today:
The corrective wave continued higher in a upside breakout during early Sunday in the US.
The move is causing 4-hour RSI to reverse diverge to the February price high. This may cause a temporary pullback as the market re-attempts the resistance ceiling near $440 (Bitstamp).
Low liquidity during weekend trade may see price reach the resistance ceiling (bright blue annotation) but the push would be too-far-too-soon and the resulting price spike may be retraced completely by profit-taking during Monday’s trading session.
Continuation above the resistance ceiling would break a 4-month barrier to advance. If the market can hold price above the resistance ceiling, then we have reason to switch outlook to bullish mode.
However, until then, the upward price move is unconvincing and we remain cautious of reversal back into decline.
Bitcoin price continues higher after pausing for several days. We keep an eye on the declining trendline running through $440 in the Bitstamp chart for a critical break of long-term resistance.
Reader sjs had asked for targets and possible catalysts of a rally. Analysis will be presented in tomorrow’s post.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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.