Since the beginning of November the digital currency has appreciated nearly five-fold. On Wednesday the price surpassed for the first time the psychological level of 1000 USD. Is it a prelude for more gains or just the opposite – the last chance to run away before the gigantic bubble bursts? To find out the answer we turned to technical analysis. It is probably the first such piece of analysis in the world.
The interpretation of the chart seems as obvious as possible. Almost all the three year old bull market in Bitcoin can be put into an ascending channel. The November surge pushed the price to the upper limits of the formation. This is why we conclude that there is little upside on the currency left. Although it has happened up to now that the price broke out of the channel, more frequently the digital currency reversed gains when the price touched the upper limits. Therefore the most probable scenario for Bitcoin is a correction and afterwards a longer consolidation under the level of 1000 USD.