In a very recent analysis titled Deafening Silence, I had advised the market participants to create fresh positions only near the marked support and resistance levels. I had also explicitly stated that a close above $280 could be a sign that Bitcoin is preparing for its next leg of the rally. And since Friday, we have achieved both of these things: above $280, the price has soared to hit an intraday high of $294.35, and it can be seen struggling near the upward sloping resistance.
From our Friday’s observation, the price has surged by $16.3 or 5.90% to be trading at $292.79.
Technically, Bitcoin is at a strong resistance level, but that may not hold in the coming sessions.
Bitcoin Chart Structure – Bitcoin spent a considerable time forming a base above its previous peak of $271.50 before taking off, thereby refusing to violate the higher top, higher bottom structure in place since the last week of June. Even though the price is near the supply zone, it may target its previous peak of $310.
Moving Average Convergence Divergence –