Bitcoin Consolidates at $6K, Indicators of a Rally if $7,500 Overcome - Bitsonline

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.

Also see: Citigroup Reportedly Eyes Crypto With Technique Used in Trading Foreign Stocks

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Bitcoin Price Technical Analysis

Long-Term 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.

Mid-Term Analysis

Bitcoin

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.

Short-Term Analysis

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.


If you find Ramiro’s analyses interesting or helpful, you can find out more about how he comes to his conclusions by checking out his primer book, the Manual de Análisis Técnico Aplicado a los Mercados Bursátiles. The text covers the whole range of technical analysis concepts, from introductory to advanced and everything in between. To order, send an email to [email protected] 

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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.

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