Bitcoin Price Technical Analysis for December 23rd, 2016 - About To Test the $928.53 Resistance Level

Bitcoin price continued rising to record the year's all time high of $914 on Bitstamp earlier today. So, can we see bitcoin price continue rising to test the resistance around $928.53 which corresponds to the 76.4% Fibonacci retracement level?

5 Elliott Wave Formation On The 1 Hour BTCUSD Chart:

Let's examine the 1 hour BTCUSD chart from Bitstamp, while plotting the SMAs of the Williams Alligator indicator and executing the MACD and RSI indicators (look at the below chart). We can conclude the following:

• Bitcoin price scored a high of around $914 earlier today, yet the market's bulls couldn't maintain the buying momentum and downwards price correction attempts pulled price down to record a day's low of around $877.

• We can now plot a new upwards trend line that started last Tuesday (the greenish trendline on the above chart). Also, we can now see an Elliot wave formation about to complete, as shown on the above chart, 4 waves have been already finished with 2 small bullish waves (1 and 3) followed by 2 minor price correction attempts (2 and 4); Accordingly, we expect a 5th bullish wave to complete the Elliott wave formation before reversal of the new upwards trend line can take place.

• William's alligator is still showing a bullish signal or you can say that "it's mouth is open and ready for eating". The RSI is valued around 47 despite the recent rise, so bitcoin doesn't seem to be overbought even when price is above $900. The MACD indicator is also in the positive territory, even though the negative trend line is still travelling above the positive trend line.

By referring to yesterday's analysis, you can conclude that $928.53 represents a significant resistance level as it corresponds to the 76.4% Fibonacci retracement level. According to our analysis of the 1 hour BTCUSD charts, conditions are favorable that price will continue heading North and will test this significant resistance level within the next 12-24 hours. This resistance level represents the last significant resistance level before all time's high level around $1168.72. In other words, if the $928.53 resistance level is broken, the rate of rise can become far more steeper and 2013's high can be even broken within another 7-10 days.

Disclaimer:

My price forecast is based on my experience and technical analysis of the charts. I have been trading bitcoin and crypto in general since 2010 and I have been writing technical analyses for various coins for over 4 years now. I wrote technical analysis for bitcoin and a few other altcoins for a number of well reputable cryptocurrency news portals including Newsbtc.com, Cointelegraph.com and others. Googling my name Tamer Sameeh shall give you an idea about my experience in this arena.

Trading bitcoin can carry significant risks, trade cautiously.