An analysis of Bitcoin prices: Overcharging can lead to a new rally

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Last week after strong growth for several minutes rocked the market, then the price increased by 7%, Bitcoin has shown serious potential, as he continued slow growth, and he managed to install a local maximum at 6800 dollars:

Figure 1: BTC-USD, hourly candles

This jolt caused the market to temporarily set a new monthly high after lifting the main cryptocurrency to 6800 dollars. Apparently to continue the rally, must take a range of reaccumulation shown below:

Figure 2: BTC-USD 15-minute candlestick range of reaccumulation

It is too early to say that the current consolidation has some distinctive features of the classic range of reaccumulation, which if implemented, is likely to lead to continued growth.

Currently, the market rebounds from what seemed like the “beginning” or “shock” that looked like an attempt to create liquidity for the big players. Part of the proposed shake-up involves testing a previous resistance to see whether this level to work properly as a support. And as you can see below, the rally tested the previous high and is currently testing support is a good sign for the bulls:

Figure 3: BTC-USD, hour candlesticks, support resistance spring

So, where does that leave us? Although at the moment this is pure speculation, if we see a strong round of buying, the first immediate test will lead us to the top of the current trading range again to test 6 800 dollars. If the range of reaccumulation will be sufficient for consolidation, the expected breakthrough with growth potential, which will undoubtedly force us to test our descending trend line

Figure 4: BTC-USD, 12-hour candles, the Macro downtrend line

If we can go to the downward trend line, it will mean our fifth test on break this boundary. It is potentially changing the trend signal, which may pave the way through several lines of resistance and to get us out of the bear market.

While a few major altcoins have shown a good profit, Bitcoin still careful; he will continue to do this until until this descending trend line will not be disturbed. Macro-trend is slightly ahead of when the total amount konsolidiruyutsya, and, as we have seen in the past, several major altcoins have begun to increase trading volumes, which potentially has led to strong growth.

As always, this is purely speculation, but it is a scenario that is quite possible. If we see the final break of this trendline, we can expect that the market will start to appear a great interest to purchase as the larger investors will have confidence in a potential bullish market.

Summary:
After a power rise of Bitcoin has managed to rise, until eventually not reached a local maximum at 6800 dollars.

  • There is a strong argument in favor of the fact that the consolidation of Bitcoin is the range of reaccumulation or recharge and can lead to a potential continuation of the uptrend.
  • If we go on the top of the trading range we can expect check the resistance line of the downward trend, if this happens we will have to reassess the market.
  • If Bitcoin manages to break the downward trend line, it will lead to a strong surge of shopping, as it signals a possible change in trend from bear market to bull market.
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