Bitcoin Consolidates at $6K, Indicators of a Rally if $7,500 Overcome
Bullish consensus continues to increase as the bitcoin prices consolidates at $6,000 USD as the new bottom. Once this process is finished, the price will reach $7,500 before hitting the next rally.
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Bitcoin Price Technical Analysis
While a big Inverse Head and Shoulders formation is still active, prices are touring a triangle pattern that recognizes $6,000 as a support. Resistance can be analyzed at $7,500 for the first upward swing in a zig zag movement, while the second attempt should be considered at $8,000.
If quotes can overcome $7,500, a strong bullish signal would be on the table, activating higher objectives from there to $16,000, with an intermediate resistance at $12,000.
A lateral market started in March 2018 and could be crossed to the up side to an intermediate resistance level expected near $8,000.
Following Mass Psychology Analysis, a “Wall of worry” stage could be overcome if prices face the resistance after crossing a 1000-point congestion area settled between $6,500 and $7,500.
This was not possible in the recent upward movement to $7,500, from where values dropped back to the $6,000 support and stabilized.
According to Japanese Candlestick Analysis, demand´s Soldiers were defeated by offer´s Crows when they tried to overcome the top border of a 1000-point battlefield, already defined from $6,500 to $7,500.
If in the next attempt a trigger is reached at $7,700, it would activate higher technical objectives near Fibonacci retracement levels. Intermediate resistances in that scenario can be considered at $6,700 and $7,000.
If both overlapped formations — an Inverse Head and Shoulders and a Triangle — confirms, the Optimism phase should be active. Current correction matches second wave from Elliott´s theory, and if it rebounds, then the 3rd movement from the same criterion would drive the action to $8,000.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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