This article was written by Ramiro Burgos.
The bitcoin price looks ready to start a parabola-style movement following recent gains, bringing the markets to $1,500 before settling down in the $900 range.
Bitcoin Price Technical Analysis
Prices have arrived to the former technical objective at $820, and are still going on an upward movement, expected by global media to reach the $2,000 zone.
However, according to technical analysis, the bitcoin price will climb to a more modest $1,200, a level backed by political factors that will disappear — along with any long-term support — as the rally continues beyond this point.
Furthermore, according to the bullish pattern that often take place in the charts, a parabola could happen, meaning that such highs will last just a few days before falling back to the $850-$900 range, performing some kind of needle that could build a support with a lateral sideways market among $850 and $1,000.
Bitcoin price volatility has increased while support gets stronger at $700, preparing for the climb to the $820 trigger area, where some kind of euphoric bubble will emerge and drive the action beyond currently-calculated technical objectives.
Bubble-driven activity could take prices as high as $1,200 for a few days, before settling down in the $900 range.
According to indicators, the market currently has enough strength to push a fast rally powered by political factors and media hype. While fundamentals project a $2,000 bitcoin, profit taking will likely commence at the $1500 level as a big distribution area.
According to the flag pattern we saw last week, the next relevant level could be analyzed at $820, from where prices could start an upward movement toward several technical goals over $1,200.
However, Japanese Candlestick Analysis doesn’t allow for such a rise to be sustained for long, and suggests a pull-back from $1,200 and beyond to somewhere between $850 and $900. This retraction could prove a psychological hit to “pioneer” bitcoin holders, who may sell out of confusion, favoring the larger marketplace of banks and investment firms.
What do you think will happen to the bitcoin price? Let us know in the comments below.
Cover image via Pixabay.
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.