Another day and another wave of advance. Bitcoin price has broken through $680 and the market is currently with $700 which had caused deep correction a month ago. Technical analysis looks for up- and downside targets.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
At 12h00 UTC it became apparent that price was preparing to launch from its consolidation zone below $680 (Bitstamp) and push higher. The 1hr stochastics (top panel) were dropping to their minimum and the xbt.social buy signals were starting to form. A trade recommendation was issued and within an hour the move above $680 resistance happened.
Price has now pushed into a contention zone (orange) that had previously seen a lot of conflicted price action. Additionally, today’s high targeted the 1.618 Fib extension, at $700 (Bitstamp), drawn from the second base wave. This means that expected profit taking will pause the advance below $700.
During the previous advance into this zone (left of chart) there had been an onset of strong selling that had drawn price toward the $650 level (magenta arrow) on three occasions. The same may or may not happen at the present juncture, but the sense remains that advance will eventually continue to the 1.618 Fib extension (near $755) of the first base wave.
If price breaks clear of this present contention zone, above $720, there is clear chart air to $755.
Bitcoin price has broken above the $680 resistance level and profit taking has paused advance below $700. A correction back to $650 cannot be ruled out at the present juncture, but the primary target still remains at $755.
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Bitcoin price charts from TradingView.
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