The Big Nothing: Bitcoin Price Enters 4th Month of Sideways Movement
The bitcoin price has begun its fourth month of lateral market activity. In those four months, collective emotional reactions have activated, pressuring the markets to mount a large movement. The direction of that movement — up or down — however, is uncertain.
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Bitcoin Price Technical Analysis
After four months of sideways activity, all bitcoin price indicators continue showing contradictory bearish and bullish signs. A basic evaluation of resistance and support reveals support at $3,500 USD and resistance at $4,100.
All essential elements that can be collected from Mass Psychology Analysis, point to a bearish diagnosis, with the market currently sitting between the disinterest and disbelief phases. Adding to the evidence for bearish dominance is an apparent lack of bullish consensus. On the other hand, Contrary Opinion Theory sustains the chance for an uptrend reaction.
The last downward movement started with a false bullish reaction from $6,000 to $8,000 and back to the starting point. A few days later, prices plunged from $6,000 to $3,000, starting the current sideways movement we are analyzing today.
Currently, wishful thinking tends to back a recovering movement up to $6,000. However, due to the same daily price range holding for a prolonged period, mathematical indicators reflect unreliable signals. That means the market can currently only be influenced by external factors that boost emotional reactions. Thus, wishful thinking could win out, and we may see a rise to $6,000 in the mid-term.
Japanese Candlestick Analysis, Fibonacci Retracement Numbers and Bollinger Bands reflect that Demand´s Soldiers have failed again in their attempt to drive the action beyond $4,100, where the 38 percent level has settled a strong resistance.
As the lateral market continues, Offer’s Crows get stronger by administrating a distribution area between $3,800 and $4,100. Only Bollinger Bands show reliable signs at the $3,900 area, smoothing the increasing volatility. However, a 1000-point bearish swing and back could call reinforcements from lower levels to overcome the current $4,100 resistance.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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