After a frightening plummet, the bitcoin prices now faces a panic sell that could send it down to $3,500. From there, however, the price looks like it will bounce, breaking out of the current bearish channel to start a reversal rally.
Bitcoin Price Technical Analysis
The bitcoin price needs to break a strong descending resistance before entering a reversal pull-back to $14,000. Such an action seems possible only during the Panic phase at a lower level near $3,500, where the Elliott Wave Theory ends the cycle and Fibonacci´s retracement numbers would drive the reversal back to the up side.
If this psychological scenario favors the bearish side of the market and quotes bounce at $3,500, the resistance at $9,000 – which the markets have presently failed to overcome – will be easier to break to the up side at $6,000. From there, values should exit the bear trend to start an upward recovery movement.
Mathematical indicators usually anticipate the trend, as it happened before during 2016 and 2017, with bullish signals that are now opposite and bearish. Performing always the same successful pattern: checking first Stochastics Oscillators, then Relative Strength Index, then Momentum indicator and finally the prices, like following sequenced steps, the group goes in the same way.
So, this time, if the pattern repeat again, quotes could head down to accomplish bear objectives at $5,000 and $3,500, pointed by all development theories.
Only news, rumors, institutional opinions and political data can sustain a lateral market in the short-term. However, according to Japanese Candlestick Analysis, nearest support can be estimated near $5,000, with a target still at $3,500 at the bottom of the channel where a bounce is expected.
Bullish consensus is low and values could go down to allow a reversal movement. Mass psychology analysis reflects the panic phase is active and operators could make contradictory decisions with unexpected results, including some volatility increase and a technical bull reaction around $5,000.
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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.