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BTCUSD: the rate has broken the 2,594 – 2,613 USD resistance

The BCTUSD rate broke through the 2,594 – 2,613 USD resistance zone overnight, rising to 2,730 USD. From 2,594, this marks a rise of 136 USD, or 5.24%. During Europe’s trading, buyers pushed up to 2,771 USD. This rise was brought about by the news that SegWit has started a new lock-in period that experts say, if 95% of the blocks (1916 out of 2016) support the SegWit change, it would “lock in” on the network, ensuring that the code would be activated on the bitcoin blockchain. This in turn, will protect bitcoin from transaction malleability, by which it’s possible for users to manipulate unconfirmed transactions, and will also, in theory, increase the network’s capacity.

At the time of writing this review, bitcoin is trading at 2,759 on the Bitfinex exchange. Buyers were rebuffed by sellers at 2,771, although the resistance zone is located further up around 2,809 – 2,822 USD (formed from the maxima from the 23-24th of July, not visible on the chart).

Conjoining the tops of 2,730 and 2,771, we get a projected target of 2,800 USD. I’ve imposed a parallel line running through the recent low of 2,655 USD. What we get is an upwards channel with a support at 2,716 USD. If buyers slow down once this level gets broken, expect a drop to the trend line at 2,670 USD.

To sum up; buyers are panting, but with plenty of energy left to go higher. They have the SegWit news keeping them afloat. I’m predicting a rise in quotes to 2,809 USD with some kind of complex path involving a rebound to 2,716. A breakout of 2,825 would open the way towards 2,879. I can’t see it going any higher than 2,900, but we’ll see what the market has to say.

BTCUSD hourly chart. Source: Bitfinex

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