The bitcoin price remains high, holding strong in the $1200 range. And while a $600 scenario is still possible, the possibility of bitcoin making the jump to $1600 is becoming more of a reality.
Bitcoin Price Technical Analysis
The bitcoin price is still trying to stay at its historical highs. Quotes are still trying to stay at their historical highs despite further increases in volatility. New players continue entering the market as well, but their weak hands will likely cause them to dump their holdings at the first sign of a dip.
Therefore, technical indicators show split projections—raising the possibility of two different scenarios. On one hand, the price could rise to $1600 after encountering resistance at $1250. On the other hand, bitcoin could drop to $600 with support at $850.
Ultimately, this split scenario serves as a bullish sign. Past confirmation of strong support at $850 makes traders more likely to test the upper bounds of the market at $1600 rather than push the price down.
A rising trendline originating last May currently dominates the chart, recognizing support at $850—further confirmed by the brief decline in early April.
According to prevailing indicators, the bitcoin price could test the rising support at $1100. If the support breaks, then the price will default to the $850 support and trigger a bearish movement to $600.
This scenario is slightly more likely than a break out bull-run in the mid-term due to new, weak hands entering the market. Buying bitcoin as a hedge against uncertainty in current events, they stand ready to dump their holdings and move on to another asset as soon as political conditions change.
According to Gann Angles Theory, two scenarios are extremely active depending on fundamental data, political factors and multimedia news.
Many bouncing points should increase volatility these days and, according to Japanese Candlestick Analysis, prices would continues the current lateral sideways market waiting for some news or event that shock the market up or down.
One of the three possibilities of trading is to “wait and see” and that´s exactly what is going on at this special moment.
Do you agree with this analysis? Which parts? Let us know in the comments.
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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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