Bitcoin Price Analysis: 6/02/2016

Bitcoin has formed a flat above a key level. The probability of the movement continuing is increasing.
Bitcoin has formed a flat above a key level. The probability of the movement continuing is increasing.

Bitcoin has formed a flat above a key level.

The probability of the movement continuing is increasing.

The main trend is upward

The current upward trend has not been disrupted yet. Bitcoin’s price has formed a flat above the $518 resistance line. The resistance, which we have found earlier, has been confirmed several times already. These upward rebounds from $518 do confirm that there is a correction towards the upward trend.

BTC/USD price chart 1

The market is nearing a resolution, as the probability of a new trend grows with a new wave of the flat. Bitcoin’s price reaching a new diagonal channel is also indicative.

Combined with the $518 resistance line, it will be the most probable point for a turn to decline. In case of a fortification at that mark, the odds will be on the side of a short-term downward trend, which will form a deeper correction toward $460. If, however, the bulls manage to keep the advantage, there will be a new upward rebound, because the minimal correction targets will have already been reached, and there will be a chance for a short-term upward impulse to form.

BTC/USD price chart 2

The $518 resistance is responsible for the structure of the upward trend. A turn to decline could form at that level.