After testing support at $405, Bitcoin’s price rebounded and is still feeling the bulls’ 4 month momentum which started at $230 and has since more than doubled the price. Currently bitcoin is trading at $422, after breaking the $420 resistance line and turning it into a support zone. After this past weekend’s panic it seems that once again volume has died down, traders are cautiously waiting on the sidelines for the next whale to dump some btc or the next investor to buy up some coin.
Don’t get too exited yet, while it may seem like we have tested the $420 support, the volume has been so low that the next move will really determine whether we head north or south. Fanatik_ from tradingview suggests to play safe with a short positiong and watch for the $425 support.
"Daily candle makes it look like there’s going to be continuation, watch out for 425.4 though. If 425.4 breaks we have enough confirmation for a real bounce."
Read More:
http://themerkle.com/coins/bitcoin-technical-analysis-122815/
