Bitcoin Price Technical Analysis for 8/3/2015 – Saddling Up!

Bitcoin price resumed rising yesterday to score a high of around $280. March’s bullish trend is gaining strength and it is becoming more evident that bitcoin price is heading towards the $300 mark. The charts are conveying clues that signal that we can see the price increase to $290 within the next 24 hours.

By examining the 4 hour Bitfinex (BTC/USD) chart from tradingview.com and plotting the William’s Alligator indicator (look at the below chart), we can notice the following:

• Since the bullish wave started on the 27th of February, we have been witnessing a repetitive pattern that consists of a short lived bullish advance followed by a longer lasting downwards price correction wave that pulls the price down to 50-70% of the gained amount.
• We started to notice a rising support level as shown by the green trend line on the below chart. If the price continues to go along this rising trend line, we can see the $300 level tested within the next 3 days or so.
• The SMAs of the William’s Alligator indicator are showing a bullish alignment with the 8 period SMA (jaw) on top, the 13 period SMA (teeth) in the middle and the 21 period SMA (lips) at the bottom. Accordingly, we anticipate bitcoin price to rise further within the next 24 hours.

By examining the 1 day bitfinex (BTC/USD) charts, plotting the MACD indicator and calculating the 20, 50 and 100 day EMAs (look at the below chart), we can conclude the following:

• The MACD indicator has entered the positive territory and the blue MACD line has crossed above the red signal line which signals continuation of the bullish wave to control the market.
• Bitcoin price is now above the 20 and 50 day EMAs and is about to rise above the 100 day EMA which points to the recent uptrend that is likely to continue pushing the price to higher levels.

Conclusion:

Bitcoin price resumed rising yesterday to print a high of around $280. Our technical analysis is in favor of continuation of this bullish wave so we can see bitcoin trading at around $290 within the next 24 hours.

Charts from bitfinex