Friday, January 28, 2022

Bitcoin Price Analysis: $1500 or Bust as New Players Enter the Market

Bitcoin Price Analysis: $1500 or Bust as New Players Enter the Market

The bitcoin price has broken the $1100 resistance by more than $100, allowing for higher technical objectives near $1500 despite the persistence of many bearish signals. Backing this unexpected price rally is fresh trading volume coming from new, worldwide players.

Also read: Are Craig Wright and Gambling Tycoon Trying to Cash in on Bitcoin Patents?

Bitcoin Price Technical Analysis

Long-Term Analysis

bitcoin price technical analysis

The latest rally that broke the $1100 resistance has brought in new bitcoin traders from around the world. These traders, after setting up their long-term strategies, could trade short to average their positions.

In such an event, the current bubble would get blown down, and the bitcoin price would be driven down to $600. Bearish factors backing this potential decline include a synthetic trading trough created by high-tech trading strategies, as well as a the brewing regulatory storm in China.

Mid-Term Analysis

bitcoin price technical analysis

According to technical indicators, volatility is still increasing, creating expectations of a big price movement—either up or down. With the bitcoin price now well beyond the $1100 resistance, new technical objectives must be evaluated at $1500.

Meanwhile, bearish signals still warn of a fall to $600, although the decline has been seemingly delayed while volume triplicates and new players enter the market.

These new traders have taken the jump into the bitcoin world amid renewed regulatory confusion in China. In a political move, these traders are investing large sums in bitcoin, with their new market influence joining the long-existing bitcoin whales.

Short-Term Analysis

bitcoin price technical analysis

A key reversal signal remains at the top of the chart, creating a scenario that ends the upward movement in the short-term. So far, the bitcoin price has ignored this signal, but all other technical signals are still bearish.

Currently, an increase in newly-sourced volume provides backing for the present rally. As a result, Gann Angles Theory shows a rising support at $1100 and a second one at $900. However, these supports appear weak, dependent on fluid volume and news hype.

What do you think will happen to the bitcoin price? Let us know in the comments below.

Cover image courtesy of Pixabay.

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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