Bitcoin price is looking good, bouncing back from the SEC’s ETC rejection. But can it last? Our technical analysis remains bearish, saying it still has the potential to drop to $600.
Long Term Analysis
Over the 1100 resistance, the next technical objective would be evaluated at 1500. But Relative Strength Index doesn’t allow prices to reach more than 1300 before turning down to the main support at 600. Without the support of manipulated multimedia news, the quotes should be floating in a distribution area before ending the current bubble. They will retest the highs and recognize the downward movement to 600, with intermediate levels at 1100 and at 850.
Mid Term Analysis
Back at the 1100 resistance, all technical objectives must be evaluated among many bear signals, warning about a fall to 600 that seems to be active again. Many new bitcoin holders that recently arrived from different countries around the world are expected to leave the market or at least stay quiet at a side, evaluating a way out. According to indicators, volatility decreases and bearish consensus increases — and because quotes depends on the news, these could be manipulated
Short Term Analysis
Last week a key reversal signal (occidental Bar Chart nomenclature) appeared at the top of the chart ending the upward movement. Prices had ignored it, but the key reversal signal is still there as an important warning to be evaluated. After the ETF´s rejection news, an Evening Star (Japanese Candlestick nomenclature) appeared in the chart announcing the end of the rise again. All figures and indicators signals are bearish. The Gann Angles Theory shows a rising support at 1100 and a second one at 850. However these supports are weak, depending on fluid volume and multimedia news.
Are you trading bitcoin? What is your plan for the coming weeks and month. If you agree or disagree with the analysis here, please let us know.
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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.