Market Eyeing a Push Above $600 for BTC-USD
The markets for BTC-USD continued bullish momentum with fresh highs above $570 on the BitStamp exchange. The price has gained $31.00 on today’s open and is up 5.76 percent to $569 at the time of writing. Buyers are slowly bidding the market toward fractal resistance at $597 and we could see a spike above $600 in the weeks ahead. If the market fails to sustain itself above this important fractal level then we should see a downwards slide to the mid-$500s.
As the 4-hour chart below shows, the price action broke the fractal resistance at $539.99 in the late hours of Friday’s Asian trading session, posting a high at $574.85. The conversion (blue) line and base (dark-red) line are both suggested to be good entries into the ongoing upward trend as they both offer minor support. If the market fails to close below these levels, then we should see bullish momentum resume. However, if the market closes below the conversion line, currently at $551.99 then we should see downward momentum dominate.
The Ichimoku cloud is continuing to trend upward, and the support zone indicated by the cloud has moved upward to the $500 psychological area and as high as $550 for the trading sessions next week (early Wednesday). The chart above indicates the most recent fractal buy and sell levels at $529.13 and $540.00 respectively. Bullish momentum should continue to dominate as the market has established more than two higher highs above the most recent fractal sell level which was a resistance level but now acts as support.
Sellers should look to short BTC-USD if the market breaks below the open of the first three bullish candles at $538.80 as this would signal a shift in momentum. At the moment, the conversion and base lines are not trending, suggesting that the market will range close to these two lines within the $540-$560 region. If we see these lines start to trend upward or downward, then this will indicate which way the market will start to move over the long term.
The shorter-term outlook is displayed below with the 1-hour price action on the Bitstamp exchange. The market is currently in between two important fractal levels at $574.85 and $562.50, so we are awaiting a breakout either to the downside or to the upside to take advantage of the momentum in the market. Bullish momentum is indicated by the conversion line which is trending upward and is above the base line. Further bullish confirmation will be given if there is an hourly close above the fractal resistance at $574.85.
On the other hand, if the market fails to sustain itself above $574.85, we could see a shift in momentum. Also, an hourly close below $562.50 would signal a shift to bearish momentum and see the market test the support zone provided by the Ichimoku cloud. If the market manages to break above the fractal level at $574.85, then the next target for bulls will be the resistance at $597 and $610. However, if there is a break below $562.50, then the target for bears in the market will be $550 and $536.20.