The price of bitcoin is at record highs on May 1, reaching $1425 on the Bitstamp exchange, after breaking the previous all-time high at $1350. A move above the peak reached in the market mayhem accompanying the SEC’s ETF decision indicates that a long-term target for bulls has been validated at $1719.97.
The monthly timeframe is shown below, with April’s candlestick displaying bullish dominance with a Marubozu, suggesting that it may be an optimal time to enter into a long position on bitcoin. After see-sawing around $1163 in February and March, a clear break of the $1163.00 handle has been achieved in April, pointing to a move toward $1829.20 over the remainder of 2017.
Also, notice that the Ichimoku cloud and converison line (blue) are moving higher as compared to the previous month, suggesting that the market will continue to trend higher for May.
Week on week volume has been growing for the past 21 days, pointing to further gains ahead, as shown by the chart below. The next target for buyers will lie at the 161.8 percent Fibonacci extension level at $1719.97. Also, notice that the Awesome Oscillator is following the price, establishing a breakout this week from the previous peak of the Oscillator at 346.25 during the week beginning March 13. This confirms the breakout will lead to further gains and gives a strong probability the market will reach $1719.97 over the long term.
The daily chart for BTC-USD is shown below. Notice the sharp graident of the conversion line, which is almost vertical, suggesting strong bullish momentum. Also, we see that the Market Facilitation Index is green, suggesting that traders should follow the market momentum and try to buy in into the ongoing uptrend.
However, we may see some short-term correction. For example,