What a week! The bitcoin price teased us with a brief runup as forking day approached on 1st August, only to slump in the days after. That all changed over the weekend though, with a mega-rally that saw BTC blow past $3,000 for the first time since June and hit record highs. What now? Read our technical analysis to find out.
Bitcoin Price Technical Analysis
Prices activated a trigger level at $3,100, which started an up rally to higher technical objectives. This will probably double current prices, hitting the $3,500 level along the way — where it could meet resistance.
According to Elliott Wave Theory, the third phase of a big theoretical movement is on — and its goal may be evaluated far higher, even near $4,500. A bubble could be starting, with plenty of volatility around the first support at $3,000, and the second one at $2,600.
After a flag formation sent quotes to the trigger zone at $3,100, a bullish consensus is forcing a new analysis. This allows higher objectives in a zig-zag movement, starting at $3,500.
According to indicators, the lateral sideways market started in June is over — and a bubble could be taking place to double the current prices. All the news, fork data, information, political factors and every little word in the media (even when it’s negative) drives the upward trend.
The psychological $3,000 level now works as a support, thanks to Round Numbers Theory. Prices reached the trigger level at $3,100, starting a bubble in a fast movement — and confirming the third zig-zag phase to $4,500, according to the Elliott Wave Theory.
Indicators reflect high volatility, while a new support at $3,000 could bring back many investors from the “wait-and-see” camp back into active trading action.
What do you think will happen to the bitcoin price? Share your predictions in the comments below.
Image via Pixabay. Bitcoin price charts via Bitstamp.
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.