Bitcoin price is within reach of the $470 resistance level. Although the possibility of a downward correction remains, a concerted push by the bulls may be able to secure advance.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Its been a turbulent week for the Bitcoin ecosystem, and that the market managed to hold price under control is a feat.
Craig Wright’s re-appearance on the scene was a news highlight in both the Bitcoin and mainstream media. The Satoshi candidate arrived with a bang on Monday, and by Friday his blog had been cleared of puzzling technical content, and with only a farewell message and apology. The market reacted with a muted relief rally that reached toward the resistance zone near $470.
An unintended consequence of Craig Wright’s media show and private reveals, is that Gavin Andresen’s obligatory participation brought years of logjam between himself and the Core developers to a head and resulted in his commit access to the Bitcoin source code repository being revoked. Core’s mild-mannered lead maintainer, Wladimir van der Laan has offered a perspective on the matter in his blog.
The eventful week gave Bitcoin plenty of media coverage and Google Trend shows that search interest for the term “bitcoin” has sky-rocketed. This could be significant for bitcoin price, given the historical correlation between public interest and price chart rallies.
If the bulls can trade price through $470 and both open and close a 1-day candle above this critical level then advance to higher targets will be open.
However, as I’ve maintained for several months – and to the annoyance of many readers who are positioned long in this market – there is still downside risk in the market. Price has not tested support for a long time, but all the while failed to make a new high. A push above resistance, now, could negate the possibility of a downward correction to support. Even so, the momentum indicators are flashing red.
I want to remind readers that my frequent mention of a bearish scenario, is not because I am a bitcoin price bear, but merely an outlook based on the chart technicals. Emotion is running high and price action has been going nowhere for most of 2016. This adds frustration to what is already a difficult chart to analyze or anticipate.
Let’s see if the bulls can muster the buying power and volume for the required push higher.
Bitcoin price made a brief relief rally toward resistance. The bulls now only have to get price over the $470 hump and then advance above $500 will have been cleared. If there will be a downward correction before price pushes higher then we have support at $400 and $370 in the Bitstamp chart.
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.