This week, the price of bitcoin behaved as expected on last week’s analysis – “A correction with a chance of more upside sums it up”
More upside was exciting, flatlining at $ 430 and thereafter blowing past it, all the way up to $ 504. It was pretty exciting to witness the market in full euphoria. We have not observed these price levels since August of 2014.
A correction was overdue, after a relentless parabolic rise up. Typically, run ups are followed by corrections and consolidations, naturally from exhaustion. They tend to occur at key levels – major supports, resistances and intersection of moving average lines. The current market correction came in after encountering resistance from 2-year daily moving average sitting above price at $ 425 as seen on this 3 day chart
In hindsight now, $ 502 was a major top, clear from classic