Bitcoin continued rising during Tuesday's trading session to score a high of $795 on Bitstamp, which is a price level that hasn't been recorded since February, 2014. Since the market's bulls managed to break the resistance around $779.77, which corresponds to the 61.8% Fibonacci retracement level, the rate of increase in price rose significantly.
So, will price continue rising? Or shall we see a downwards price correction attempt?
Note: As this is my first daily bitcoin price analysis here on Steemit, I will try to look back on the BTCUSD 1 day chart from 2013, to setup important resistance and support levels that will aid in understanding my analysis during the upcoming days.
Moving Above the 1x1 Gann Angle On The 1 Day BTCUSD Chart:
Let's take a look at the 1 day BTCUSD chart from Bitstamp all the way down to 2013. (look at the below chart).
Now, let's plot a Fibonnaci retracement between the high recorded on the 29th of November 2013 ($1170.48) and the low recorded on the 10th of January, 2015 ($147.66) to define important resistance and support levels. We can now see that the 61.8% Fibonacci retracement level around ($779.77) comprised a crucial resistance level that was broken on the 10th of December. Although this level was tested last June, it resisted further advancement of price back then.
By plotting uptrending Gann angles from the low recorded on the 10th of January, 2015 ($147.66), we can clearly see that bitcoin price is now travelling above the 1 x 1 Gann angle since it managed to break above it last October. As the chart is now well supported above the 1 x 1 Gann angle, this means that the market is balanced and the bullish wave will most probably continue pushing bitcoin price to higher levels.
Bullish Signal Via Williams Alligator On the 1 Hour BTCUSD Chart:
Now, let's take a look at the 1 hour BTCUSD chart from Bitstamp (look at the below chart), we can notice the following:
Bitcoin price is advancing according to a rather steep uptrend (the green trend line on the chart). As shown on the chart, most of the candlesticks have long downwards shadows which shows the strength of this bullish wave and how the market's bulls are counteracting price correction attempts.
By plotting the Williams alligator indicator, we can add another bullish signal confirming further advancement of bitcoin price. The Williams alligator is showing a bullish trend as the blue line, or the jaw (the 13 period SMA) is below the red line, or the teeth (the 8 period SMA) and both of them are below the green line (the 5 period SMA), or the lips . When the SMAs of the William's alligator are aligned in such a way, the alligator is said to be "awakening and ready to eat" i.e. bitcoin price is likely to continue rising.
Conclusion:
Bitcoin price continued rising through yesterday's sessions scoring a high of $795 on Bitstamp. Our technical analysis predicts continuation of the current bullish wave, especially that the next significant resistance level lies around the %76.4 Fibonacci retracement level which corresponds to $929 and right now the market's bulls are well supporting price above the 61.8% Fibonacci retracement level ($779.77). We can see price exceed $800 during the next 12-24 hours.
Disclaimer:
My price forecast is based on my experience and technical analysis of the charts. I have been trading bitcoin and crypto in general since 2010 and I have been writing technical analyses for various coins for over 4 years now. I wrote technical analysis for bitcoin and a few other altcoins for a number of well reputable cryptocurrency news portals including Newsbtc.com, Cointelegraph.com and others. Googling my name Tamer Sameeh shall give you an idea about my experience in this arena.