The bitcoin price keeps going up, and so does volatility. Get ready, it’s going to be a bumpy ride to $9000.
Bitcoin Price Technical Analysis
A 3rd flag formation should take place in the chart, renewing the bullish consensus to consolidate recent support levels at $5500 and $6000. That action would support the developing theories of a rise to $9000 by the end of 2017.
As for the volatility: political developments – such as China’s ICO ban and Russia’s CryptoRuble – traders could be executing accumulation strategies while waiting for any positive news or fundamental data to boost the bitcoin price in another rally.
When the bitcoin price reached $6000, it confirmed Elliot Wave Theory and repeated Gann’s Angles criteria for a third time. A lateral sideways market has emerged, which will likely settle around $5500.
According to indicators, the market could trade in a zig-zag pattern with some profit taking. This activity could attract new traders that will increase volatility. Meanwhile, the big traders will set their positions for the bigger rally.
Increasing bullish consensus has created a theoretical duplication that would take the bitcoin price to $9000 after a high volatility, sideways pattern. That pattern is occurring right now.
Short-term support can be analyzed at $5000, with a theoretical resistance at $7000. That resistance level leaves a wide trading range, in which $6000 could become an axis, leveling the price out.
What do you think will happen to the bitcoin price? Share your predictions in the comments below.
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