Bitcoin price gains may continue to surprise

Bitcoin price is beginning to show signs of rising at the end of its current range. Analysis suggests that if the previous momentum is maintained, an additional new high could be in the cards. The price could continue to surprise despite strong technical indicators calling for it to cool down.

Bitcoin Price Analysis

Bitfinex 1-hour chart

From xbt.social report earlier today:

The purple-red line shows the divergence. The RSI indicator provides us with a warning of a potential continued rise: the last high caused the RSI index to diverge, but the downward move caused the opposite divergence, that is, the market only made a higher low relative to the previous price fluctuations to form a new low.

If the price continues to rise, the price range in the purple circle above the blue dotted trend line should be the target range. For this to happen, we want the price to stay above the 800-period moving average (purple) and the downward golden section line. The support range is also marked in the purple circle. If the support line is broken, the lowest purple circle shows a possible target.

The $220 target now seems impossible, but $234 was seen in the previous few days – the price just has no momentum, although it is required to accelerate upward. xbt.social member "P", pointed out that the buy signal on the moving average has appeared in the chart, however, the spread from $229 to $234 (now $235) does not seem worth the risk.

The continued pursuit of higher highs is a risk: although indicators on the 4-hour chart (and even on the daily chart) point to a downward move, prices continue to move higher – accelerating from a state that could only be described as “dull” a few days ago.

Remember, the wise speculator always has plenty of patience and cash reserves. – Jesse Livermore

Summarize

If the price of Bitcoin continues to move higher, then $250 and $260 are possible. However, before we imagine this scenario, we have to see what happens to the current price. If the price turns back up from the support level, its first challenge will be the upper trendline. Above it is the resistance line of the daily chart at $242, and then the previous consolidation phase high at $250. Regarding the current correction and consolidation, the most favored view is that this consolidation will not really end until above $250. Unless we see prices above this level, we expect at least a wave of decline to around $225 (Bitfinex).

Bitstamp Depth Chart and Buy/Sell Volume Indicator: