Another Crash? Bitcoin Price Hinting at Another Fall to $2,500
After failing to pull off a bull rally during this sustained lateral market, the bitcoin price is preparing for another drop. This time, it seems the price will go down to $2,500 USD before making another attempt at a recovery.
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Bitcoin Price Technical Analysis
After the current bitcoin price held steady between $3,500 and $4,000 for two weeks, the market did not receive positive news — or even a rumor — that would allow it to increase bullish consensus. Therefore, without any fundamental support, the bitcoin price could head down to the pre-bubble support at $2,000 to test a “V” bounce near $2,500.
If the plunging swing pattern confirms, Mass Psychological Analysis could be sensitized and change from the current Disbelief phase to Capitulation, allowing a reversion powered by institutional investors to overcome $4,000 and double support quotations.
The extended sideways movement in progress has sustained the action so far, but indicators reflect exhaustion. After the Inverse Head and Shoulders formation failed, an Inverted Flag appeared in the charts and sent the bitcoin price down.
When transferring 2018´s lateral range to the current year, prices could briefly recognize Round Numbers Theory’s imaginary support at $3,000. However, when selling pressure breaks down the trend to $2,500, a reversal movement is expected to start.
Again, Japanese Candlestick’s fairy images seem to be useful in explaining market sentiment. After offer’s Crows gained control of the $4,000 level, the bitcoin price started falling to $3,500.
Decimated, the Soldiers of demand are not capable of sustaining an advance and are retreating from battle, ignoring the imaginary support near $3,000. Now, the Soldiers appear to be reorganizing a reversal “V Bottom” plan before arriving at the real support at $2,500, which was established in 2017 before the bubble.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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Image via Tony Loyd/Medium
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