Although we’re currently in a China-fueled pullback, the bitcoin price still seems to be on track for a year-end objective of $9000 after finally reaching the $5000 trigger.
Bitcoin Price Technical Analysis
After an early surge beyond a flag pattern, the bitcoin price briefly reached $5000 before falling back to a strong selling area just above $4500.
From here, the price could test the first support at $4000, which has emerged following the 4th wave of Elliot’s theory. However, a secondary analysis suggests that an increase in new traders motivated by forecasting from the 5th Elliot Wave could trigger a resurgence in the rally, pushing bitcoin to $9000 before the end of this year.
The Elliott Wave 5th phase can be evaluated between $4000 and $5500, breaking the psychological barrier at $5000 and activating a trigger to higher levels which – including a surge to $9000.
In the mid-term, indicators reflect high volatility, a wide trading area with a bouncing zone below $4000, and strong bullish pressure near $4800. If that bullish consensus confirms, trading could be driven to the new trigger level at $5500 .
A trading area can be analyzed between $4000 and $5000, which allows a lateral zig zag market to consolidate the present price level. This activity would increase bullish consensus before the next advance of the 5th wave of Elliott´s Theory that drives the bitcoin price past the $5000 psychological barrier.
In the short-term, such a bullish development could survive a significant bout of profit taking and the market would still reflect a rising consensus to the upside. From there, new traders entering the market would bolster that bullish consensus, preparing the markets for a continued rally.
What do you think will happen to the bitcoin price? share your predictions in the comments below.
Image via IMF Blog. Price charts courtesy of BitKan.
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