Bitcoin Technical Analysis 11/05/2015 – Its a bloodbath

This week has been quite eventful for those following the markets, just today the market fluctuated $100 from a low of $405 and a high of $502. There are a few theories as to why the bitcoin price increased so rapidly so fast, however one thing we know forsure, there are many opportunities right now to arbitrage between exchanges,  and take profits from trading in the volatile market.

Is the rally over?

If we take a look at the current RSI ( Relative Strength Index ) of the market we can see that it is almost the same as it was during the first bitcoin bubble where btc pushed $1000. This means that the Bitcoin value can easily double in the next couple days because there is enough momentum to move the market. Breaking the $500 mark is a psychological barrier and will test our greed or belief in bitcoin.

bitcoin114
Edited chart taken from bitcoincharts.com, is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.

Even though bitcoin reached a peak of $500 and dropped to $430 does not mean that the bullish trend is over. Bitcoin has strong support at $374 and since we broke the $400 psychological barriers if you are looking to secure a long position buying at dips is the best option. Currently the market faces strong resistance at $454, so if it breaks past $460 then the price would be expected to rise further and test the $500 psychological barrier.

Disclaimer: The above is not trading advice and theMerkle does not take any responsibility for gains or losses that may result from the above article.

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