After accomplishing a parabolic movement to $1200, prices are falling back to a lateral market at the $750 level. Our latest technical analysis suggests the high times are over — at least for the time being.
Prices had accomplished a parabola movement that reached the 1200 area, and fell back to 850. The next support level is at 750, from where a lateral sideways market could take place in the chart for a month at least. While this happens banks, governments, traditional mass media and political factors cover this subject with confused information and explain the basics of Bitcoin to their constituents. The next potential scenario would be a smooth rise to stabilize around the 1000 level in February.
Following Fibonacci theoretical retracement rules, bitcoin prices are trying to sustain themselves at this 900 level, but according to indicators the quotes are going back to the support level near 750, from where a lateral sideways lateral channel would take place to stabilize the market from this level for good. The resistance would be calculated at 850 in a wide trading range that could build a big triangle to attempt a rise in February. Next support is calculated at 600, but the technical objective for the present downward movement should be estimated at 750.
Bitcoin prices are fighting to sustain themselves at the middle of the last parabolic movement because of Fibonacci retracement theory. However according to Japanese Candlestick Analysis, the next lateral sideways market should take place 200 points below this level at the 700 area. This would have a wide trading range which recognizes its resistance at 850, building the next technical roof one hundred steps down.
In any case, it appears we won’t see last week’s $1200 highs for bitcoin again in the short term. If you have the stomach for more, though, there could be some buying opportunities soon.
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.
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