The bitcoin price continues to burn fuel as it holds steady at $1100, warming up for one of two scenarios: a bull run to $1600 or a drop to $600.
Bitcoin Price Technical Analysis
After reaching the $1350 peak in early March, the bitcoin price couldn’t go any further to the upside. Therefore, it started a zig zag distribution area, recognizing support at $900 and a resistance at $1250.
According to indicators, if prices head downwards in this distribution area, the next theoretical support could be at $850. If downward momentum breaks the $850 support, the bitcoin price will likely free-fall to $600 with bearish signals dominating the charts.
According to Fibbonacci retracement numbers, a strong resistance at $1250 stopped the most recent bull run. From this point, the bitcoin price will likely turn downward again to test the current $850 support.
If the markets confirm the $850 support, the running projection of a fall to $600 will be dismissed once and for all, with bullish signals taking its place. If that support is tested and fails, though, the chance of a drop to $600 will remain – followed by a bounce back to $850.
According to Gann Angles Theory, a big trading area is defined in the chart between $1350 and $850. This area has several bounce points that would increase volatility until the bitcoin price breaks out to the technical objective at $1600. The bearish side of this analysis sees the bitcoin price falling from one of these bounce points to the main support at $600.
Both scenarios are plausible and likely depending on fundamental data, political factors and news. Furthermore, technical indicators—due to the passage of time at the same level—are divided, making both scenarios technically possible as well. This split analysis makes it difficult to predict where the bitcoin price will go in the short-term.
What do you think will happen to the bitcoin price? Give us your predictions down below.
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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.