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.
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.
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.
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.
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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.