Sunday, December 4, 2022

Bitcoin Price Set to Reach $1600 After Smashing Historic All Time High

Bitcoin Price Set to Reach $1600 After Smashing Historic All Time High

The bitcoin price has smashed its all-time high and continues to rise. At this point, $1600 is likely, but a small chance of a downside scenario still exists.

Also read: More Digital Currencies Activating SegWit as Bitcoin Remains in Deadlock

Bitcoin Price Technical Analysis

Long-Term Analysis

bitcoin price technical analysis

Prices have pushed into $1300 territory, increasing the chances of bitcoin surpassing the $1350 technical resistance. If this happens, a breakout rally to $1600 is likely.

In addition to these bullish signals, the $600 downside support still exists, prepared to shore up the price in the event of heavy profit taking.

In the meantime, time is playing to the bears’ advantage, allowing them to set long-term strategies that could generate bounce levels between $850 and $1000.

Mid-Term Analysis

bitcoin price technical analysis

The current climb started in early April due to the entry of many new traders looking to hedge investments against political uncertainty. These traders will likely cash out as soon as the global political climate stabilizes—forcing us to continue acknowledging a possible bearish scenario.

Once the new traders decide it’s safe to cash out, they may run away from bitcoin quickly and push the price down.

However, this scenario has diminished in likelihood due to the break out rally beyond $1350. By smashing this resistance, a psychological barrier has been broken, making it much easier for the bitcoin price to shoot up to $1600.

Short-Term Analysis

Gann Angles Theory projects the persistence of the conflicting short-term scenarios projected in last week’s analysis.

On the bullish side, the bitcoin price could continue rising to $1600—and maybe beyond. This scenario has gained more real world support in the last week, with bitcoin surpassing the $1350 resistance. According to Japanese Candlestick Analysis, the bitcoin price must hold above $1250 to ensure the rally to $1600.

We still have to consider the possibility of weak hands leaving the market, though, and driving the price down to $600. However, just as the bullish scenario has gained technical support, this bearish possibility has lost momentum.

What do you think will happen to the bitcoin price? Share your predictions down below.

Image via 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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