Remember how we told you that the bitcoin price would hit $20,000 USD soon? Forget about that. Now, we’re on our way to $28,000 after we made it through a brief correction.
Bitcoin Price Technical Analysis
After a sharp climb over $17,000 the bitcoin price backed down for 38 percent of the last ascending movement, following Fibonacci Retracement numbers. The price then to bounced back at $13,000.
This brief pause in the ongoing rally has allowed the mathematical indicators to decrease enough to allow consolidation, before boosting quotes to higher levels. Transferring the trading activity from the currently wide trading range to the peak of the upside, we can set the next technical objective near $28,000.
On the other hand, if prices end up at the lower end of the trend, successive Fibonacci supports can be considered at 50 percent of the same range near $11,500, and 62 percent near $10,000.
We can even evaluate developing theories to forecast the bitcoin price. Recently, the price has risen faster than usual to technical goals – like $12,000, and now $28,000 — making it harder to use these theories for forecasting.
This phenomenon could be due to mainstream portfolios from around the world adding bitcoin as a legitimate asset. Meanwhile, institutional investors are forming strategies on how to add bitcoin to their business models, often finding themselves at odds with the philosophies of the original “hodlers.”
These scenarios would explain the high volatility and erratic trading range, which hasn’t seemed to be affected by politics, nor the global media.
Japanese Candlestick Analysis is currently focused on a hammer signal and a strong enough trend to restart a 5th upwards wave movement according Elliot’s theory.
Paying attention to Gann Angles’ criteria in the present, the bitcoin price would need to cross the bearish angle to reach the trigger in a lateral market again.
Last time, this same pattern happened quickly at $11,000 where the Fibonacci middle support has now settled. Therefore, any trigger — even negative — could accelerate the rally to $22,000 in the short-term as a first step to $28,000.
Do you agree with this analysis, or have a prediction of your own? Let’s hear it in the comments.
Images via Pixabay, Bitstamp, BitKan
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.