So far, the bitcoin price has dismissed all developing bullish theories and seems to be on the way down to $5,000. There, a weak support could give a brief delay before a massive panic selloff to zero.
Bitcoin Price Technical Analysis
After 15 days of sideways activity at Fibonacci retracement levels, quotes are now heading down to a weak support at $5,000 on the way to zero.
If – while at that support – traders can delay the downward trend, a second parabolic movement to the up side would be expected, sending prices first to $14,00, then back to $8,000.
Over the next 10 days, the Chinese New Year could slow down trading in the East, while the main financial institutions in the West continue to enter their positions near the technical supports.
A simple inverted flag took place in the chart and ended Elliott Wave development considerations to send prices downwards. This bearish flag joins with a second triangle that broke down like the first one, and all the figures coincide in the bearish objective of $5,000.
A new trading resistance can be considered at $11,000 and a new intermediate stop loss support can be analyzed at $6,200. Mathematical indicators now support the down trend allowing, allowing for a few days of sideways trading before another fall to $3500.
According to Japanese Candlestick Analysis, a new “Spinning Top” bounce could sustain values long enough for a lateral market to gain strength over $11,000. However, weak signals need to be confirmed strongly over the next few days for that to happen, or else another panic will ensue.
Gann Angles criterion never confirmed the signal given in early January, and after 30 days of descending, a dead cat bounce is expected near $5,000 before further decline. That is, unless, the cat has nine lives and keeps on bouncing.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.