Now at $441, bitcoin is close to registering the highest weekly closing of 2015. As the cryptocurrency remains in the strong grip of the bulls, speculators are creating even more bullish positions. But have they pushed bitcoin in the danger zone? Is a correction in the offing? Let us try to predict that by conducting a technical analysis on the weekly BTC-USD price chart taken from the BITSTAMP exchange.
Bitcoin Chart Structure – As can be seen from the chart above, bitcoin is trading in a strong higher-top, higher-bottom structure. The cryptocurrency has breached the resistance trendline connecting the previous two peaks of 2015, and has retested it, stamping it as a strong support, and headed higher.
But, a matter of concern is the consistently flat volume. This presents a possibility that only a limited number of participants are pushing the price higher and bitcoin is struggling to attract new investment dollars.
Bollinger Bands – The cryptocurrency is currently trading above the upper range of the BB, which is an indication of overbought condition. This also signals that a reversal may