Bitcoin Price Soaring Into The Sun – A Rubber Band Effect?

Bitcoin price skyrocketed earlier today to print a high of around $370. Just like we predicted along yesterday’s analysis, bitcoin price soared right after bypassing the resistance level at $330.1. The price surged to breach the resistance at $350, before dropping below it as bitcoin is now trading at $347.

New Uptrend On The 1 Hour Charts:

Let’s examine the 1 hour (BTC/USD) charts from Bitstamp (look at the below chart). We will keep the Fibonacci retracements we plotted during yesterday’s analysis and execute the stochastic oscillator. We can note the following:

  • After the Elliot bearish supercycle was completed, bitcoin price started to rise, bypassing the resistance at the 50% Fibonacci retracement level. A few hours later, the price surged to breach the resistance at $350 and continued rising to a high of $370, yet the market’s buying power wasn’t strong enough to support the price at that level, which led to price drop below that crucial resistance level.
  • We can now spot a new upwards sloping trend line forming since yesterday’s price surge. As shown by the blue trend line on the below chart, a bullish wave (green arrow) was followed by a bearish correction wave (red arrow) and we can expect

    Read more ... source: TheBitcoinNews