Bitcoin Price Analysis: May of 2016

The Spring has ended with Bitcoin exiting a flat, which has been there for more six months. Will that cause a continued long-term growth, or was it a false breakthrough?

The long-term upward trend is continuing

After fortifying at the top limit of the long-term flat, Bitcoin’s price underwent a powerful upward impulse. Such movements usually appear when one of the development scenarios becomes unrealistic. A turn was needed around $450, in order for the long-term flat to continue. In that case, Bitcoin’s price would fall to the bottom limit of the flat, around $360-90.

A turn to decline didn’t happen, which means that the long-term flat, which started in November last year, is over. The ending of the flat spells the beginning of a trend.

Bitcoin’s price has updated the maximum of a long-term trend, and the fate of further growth depends on how long the bulls will keep holding the advantage. The price has to fortify above $500 - that will be just the indication of the bulls’ superiority. Formation of a turn around $500 could provoke a fall, at least towards the top limit of the previous long-term trend.

In case of Bitcoin’s price fortifying above $500, an upward trend is likely.