Bitcoin Trading (BTC/USD) Technical Analysis June 5th: Upside Triangle Breach

Since piercing above $500 towards the end of May and continuing its rally to begin June, prices of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term have twice hit resistance at $670 (upper green line). Following the greater than 50% move high in only two weeks, the indication of resistance is a natural occurrence and represents an area sellers are willing to cash in on their holdings. However, despite the indication of supply, demand has remained steady in bitcoins, twice holding above $600, with rallies occurring each time prices approached that level.

Today, further bullish trends took place as prices moved above a short triangle pattern that had been formed. The triangle was the result of short term resistance just above $640 and an uptrend from the $610 level (see chart). After hitting $640 several times on BTC-e, bitcoin prices were unable to continue their rally but demand appeared to be increasing as prices were hitting higher lows. The increase in demand became eventually led to a greater than $10 spike once the upper resistance of today’s triangle pattern was pierced.

Heading out of the short term triangle, focus is now on the upper week long $670 resistance level and three month highs. Over the short term, the $640 level now becomes our new support base. However, falling back into the triangle would indicate that today’s momentum has dried up.