With those events receding in the rear-view mirror, the market appears to be feeding on a healthy demand for bitcoins and the latest bullish trend to have developed. The absence of unusually positive developments points more strongly to technical causes for the run-up. BTC is now trading at $634 on BTC-e, which recently expanded its MetaTrader 4 offering. BTC hit a high near $643 roughly 8 hours ago.
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The breakout started roughly 48 hours ago when BTC once again knocked on its $590 resistance level. The level had been tested twice during the previous week. Once breached, BTC proceeded to make its characteristic advance of roughly 10%. This is the fourth such advance during the current rally, which started around May 20 following weeks of remarkably flat trade.
Total gains are 45%, or 10% compounded over 4 periods. The trend does indeed look bullish, with successively higher points of support and resistance established during each leg of the rally. In no leg has the price retraced much more 50% of its advance for a meaningful period. Should the really continue, $605 may set the next floor as a sensible entry point.
This said, we are likely due for a near-term pullback even if the broader rally were to continue- assuming that this leg indeed mirrors its predecessors. However, this leg does differentiate itself with a two-pronged structure, having set a quasi-floor of $615 before the latest push higher. There may more room to the upside in the immediate term and $650 is within reach during the next 12 hours.