BITCOIN PRICE RALLY RESUMES

The Bitcoin price rally is set to resume after a deep corrections during the past days. Correction may still pull price marginally. Analysis explores the state of trend and considers upside price targets as well as what to expect in the coming days.
Bitcoin Price Rally Resumes Summary Comment
Bitcoin Price Rally
Asian Session
The Bitcoin price correction retraced 62% of the advance that began in early November. The correction ran deep, and some Bitcoin chart analysts began publishing charts accompanied by opinions that the bear market is back. This analyst disagrees. Although the correction may still be in its final stages, a new decline low for 2014 is unlikely and Bitcoin could soon see the next waves of its most spectacular rally yet.
Bitstamp 4-Hourly Chart

The Bitcoin price had surged to a high of $453.92 (Bitstamp) before correcting to $369 over the weekend. The correction is a Fibonacci 0.618 ratio and gives us reason to believe that at least three more waves will drive price to higher highs. Once the current wave of advance has hit a high near $500, $600 or $680, we’ll assess whether the largest degree of trend is set to continue to a new all time high.
Last week another chart indicator, the 100-period moving average, was introduced because of its significance in the Bitcoin price chart. This moving average (MA) is annotated in orange. Price is currently above both the 100MA and the 200MA (red) in the 4-hour chart – one of the hallmarks of an advancing trend.
The positions of the 20MA and 200MA on today’s daily candle chart are indicated with dashed horizontal lines – correspondingly annotated in green and red. The daily 20MA is at $363; the daily 200MA is at $499, and the daily 100MA (not shown) is at $419. On the daily chart price is, therefore, still below its 100 and 200 period moving averages. Until price action is established above these, we do not have confirmation of advance at the largest degree of trend. For this reason the wave labels A/1, B/2 and C/3 are used to indicate that the entire wave structure since the low of 5 October 2014 may be a corrective component of the past 11 months’ decline.

This post was published at Crypto Coins News on November 18, 2014.