This article was written by Ramiro Burgos.
Technical analysis: Bitcoin prices have started a parabola movement which could reach 1200 before falling back to 900, modifying the entire structure of the market.
Prices had already started a parabola movement from the former technical objective at 820, to reach the 1200 area and get back to 900 in a similar pattern to the one we saw in 2014. If this confirms, the present flag pattern that we’re building on these days should launch prices to the up side in a kind of euphoric bubble. This could make bitcoin lose all its political supports once it climbs over 1000, in a kind of global boycott powered by credit card enterprises and backed by European Union banks — just to marketplace themselves again from 900.
Former supports at 700 started a fast rally to back the current climb to the trigger area at 820. From there, some kind of euphoric bubble started driving the action far higher, beyond all calculated technical objectives — also perhaps reaching 1200 for a few days before plunging back to the 900 area. According to indicators now, the volatility is high enough to allow the current bullish consensus — which points an ideological goal without any technical support at 2000. This will only confuse the common people (lambs) at the top of the theoretical parabola at 1200, while professional traders (wolves) improve a selling distribution into a rising market at that high level. It’s powered by traditional media and a direct recommendation from several monetary authorities around the world, perhaps to say the opposite later in a big and confused distribution area.
According to the flag pattern we can see this week, the next relevant level could be analyzed from 820 to 1200, from where prices could start a fast bearish correction movement back to 900. This manipulation of bitcoin prices should be analyzed as a big signal of success and future, taking into account another sustained rise from 900 from early 2017. As happened with the Japanese yen technical analysis in the 80s, the entry of great global players modified technicians’ way of thinking, and the entire structure of the bitcoin market.
What do you think will happen to the bitcoin price? Let us know in the comments below.
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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