Bitcoin Price Adrift in Volatility Confusion, Touring a Lateral $9000-6000 Market
The Bitcoin Price has been confusing pundits lately, showing promise but falling back to more disappointing levels just when everybody seems to be getting excited. Why is this, and what should we expect to see next? Read our weekly technical analysis report to find out.
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts
Bitcoin Price Analysis
A Head and Shoulders reversal formation seems to be taking place in this chart and, if confirmed, support can be calculated near $6,000 USD. Two other Diamond formations had already appeared to harm bullish consensus during the current Hope Psychological Phase, cutting the way to Optimism.
Renewed support from Fundamentals, News, and traditional media — which was key to reach the $9,000 level previously — is not working these days and the most probable scenario can be analyzed with prices entering a sideways lateral movement between $8,000 and $6,000, with the $7,000 level as a center axis.
However upper resistances, if an upward movement re-starts, are at $10,000 and $12,000 — depending on external factors.
A Wait and See attitude prevails among operators, due to quotes slipping below $8,000. Mathematical Indicators don’t back another upward movement for the near-term, unless some external factor boosts the general animus for a rise.
If the formation analysis in progress completes a third Diamond in a briefly lateral market, the whole picture could reflect a well-known reversal pattern to end the bullish trend, dropping to $6,000 support for a test.
All the attention focused between the $7,800 and $8,000 level could be a psychological trigger for a rally to $10,000 if values cross that range to the up side. However it could also work as a distribution area if the action gets trapped in that zone.
A lateral market around $8,000 started in May 2019, which now seems to be ending with a bearish correction to $6,000, unless a News or some Fundamental Event backs Bullish Consensus to send quotes to higher levels.
Resistance is still at $10,000, bringing Hope to the enthusiastic late-entering crowd. But support remains at $6,000, allowing volatility to increase in a wide zig zag action while touring a distribution pattern from operators to the public.
This could also turn into a big up rally if some strong fact or political revelation appears, because new formations and figures in progress reflect stability inside the rising channel bitcoin has recently conquered.
Moreover, a lateral market could leave BTC adrift in confusion if the action consolidates around the $8,000 level by sustaining quotes over $7,000.
What do you think will happen to the bitcoin price? Share your predictions in the comments below.
If you find Ramiro’s analyses interesting or helpful, you can find out more about how he comes to his conclusions by checking out his primer book, the Manual de Análisis Técnico Aplicado a los Mercados Bursátiles. The text covers the whole range of technical analysis concepts, from introductory to advanced and everything in between. To order, send an email to [email protected]
Image via Pixabay
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.