The bitcoin price chart bubbles along just below $700 (Bitstamp) and mood in Bitcoin Land is positive. At the time of writing price is retesting the $680 (Bitstamp) level.
Time of analysis: 14h30 UTC
From the analysis pages of xbt.social, earlier today:
The bitcoin price chart is receiving calls for a top at $700 and price is currently testing the critical $680 support and resistance level.
As pointed out in yesterday’s longer-term analysis, the $680 level represents the high range of an area of contention (during late 2013 and the first half of 2014) that reaches all the way back down to $600 and 4000CNY.
If price penetrates this level then a free-fall zone all the way to $600 will open up. Price may not target $600, but correction within this zone will certainly consume time.
Regardless of downward correction, the advance lacks the final parabolic price wave that we are used to seeing at the end of a bitcoin rally. Although there have been intermediate advances without such a final parabolic “blow-out”, we do not yet see topping behavior around $700: the tell-tale erratically jumping price candles, consecutive spikes to the upside, or “whip-sawing” price action.
However, there are several reasons to believe that price may spend some time being constrained by $700. It is a strong support & resistance level in the USD charts, and the 1hr indicators (magenta) have room to the downside.
Now that price has achieved a level last seen more than two years ago, the market is exuberant and strong buying should continue. We’re seeing the second wave of profit taking from the rally top today and the market’s willingness to resume advance will be confirmed if price can hold above $680. Below that may wait time-consuming correction.
What do readers think? Please comment below.
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