Bitcoin Price Continues Towards $5000 Amid Chinese Regulatory Fear
The bitcoin price has displayed some staying power at the $4,000 level in the face of the ongoing Chinese regulatory whirlwind. With this technical support continuing to consolidate, prepare for a big rally to $5,000 after some brief sideways activity.
Bitcoin Price Technical Analysis
Following the 4th wave of Elliott´s Theory, a lateral market over $3,800 could emerge in the charts.
From there, trading would consolidate at the current $4000 support level before triggering the 5th Elliot Wave, potentially sending the bitcoin price to $5,500. The continued influx of new traders supports this technical projection.
After completing the 5th Elliot Wave, we can expect another pullback, creating a zig-zag, “ABC” pattern that will persist for some time.
Indicators reflect high volatility in the mid-term. Additionally, it looks like we’ll see a wide trading area with a bouncing zone below $4,000, a strong selling zone over $4500 and a renewed bullish consensus above $4,800.
If that consensus confirms, bulls could drive the bitcoin price to the new trigger level at $5,500.
However, analysts can find several contradictory signals in the data. According to developing mid-term forecasts, though, the most likely scenario involves a bullish trendline that backs a sideways market with an eventual rally.
With $5,000 working as a psychological barrier to the upside, successfully reaching this price level could become a bullish trigger that consolidates somewhere around $5,500.
However, if we transfer the present lateral technical channel to the up-side, a new scenario appears. In this projection, the rally continues beyond $5,500, returning to the upward trend that started in July.
Either way, all signs point to upward motion as the markets process the information put out by China regarding their stance on upcoming cryptocurrency and ICO regulation.
What do you think will happen to the bitcoin price. Share your predictions in the comments below.
Image via Pixabay. Bitcoin price charts courtesy of BitKan.
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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.