Monday, December 5, 2022

Bitcoin Price Enters Huge Rally to $9000 — What Was That Jamie Dimon?

Bitcoin Price Enters Huge Rally to $9000 — What Was That Jamie Dimon?

The huge rally this past week has far more potential than proving Jamie Dimon wrong. In reality, surpassing $5500 tripped a technical switch, placing the bitcoin price into a consolidation zone as it prepares to shoot up to $9000.

Also read: Bitcoin ABC Lead Looking to Expand Development Team

Bitcoin Price Technical Analysis

Long-Term Analysis

bitcoin price technical analysis

According to Elliott Wave Theory, five major sideways phases have ended, and the bitcoin price has entered an accumulation zone. One last sideways market will emerge between $5500 and $6000 before exploding into a rally to $9000.

If this accumulation zone does emerge, a third flag should take place in the charts, a sign of the renewed bullish consensus and a strong confirmation for the long-term rally to $9000.

Mid-Term Analysis

bitcoin price technical analysis

The bitcoin price has blown through the $5500 resistance, just touching the $6000 level. This activity marks the third repetition of the Gann Angles criteria, and is indicative of a strong support building at $5500.

In this theory, the market will enter a sideways pattern and align with Gann Angles’ center angle emerging from the up-trend that started in March 2017. This alignment will ensure the bitcoin price continues trending upwards.

According to indicators, though, the market’s relative strength is breaking, signaling the need for profit taking. The resulting drop in the price will allow new, enthusiastic traders to enter the market and renew the drive upwards, further reinforcing support at $5500.

Short-Term Analysis

bitcoin price technical analysis

The current sideways market has given way to profit taking in the short-term, allowing new traders to enter the market and consolidate support at $5000.

Japanese Candlestick Analysis reflects an accumulation strategy that could increase volatility between the lower $5000 support and the upper-bound $5500 support. If prices manage to sustain their activity around $5500, bullish consensus will start to build towards the long-term objective at $9000.

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

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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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