Bitcoin Price Goes Bearish as Media Squishes Enthusiasm
The bitcoin price has gone from sideways to bearish, due to fundamentals and external factors like exaggerated media events which have dispersed investors’ wills. For a better understanding of how, and what could happen next, read our latest weekly technical analysis report.
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Bitcoin Price Technical Analysis
The sideways movement turned into a bearish one, by stepping back below the $10,000 Round Numbers Theory psychological level. Mass Psychological Analysis can’t sustain an Optimism and Hope phase that depends on $9,000 support strength. Meanwhile, investors’ confidence dispersed amid confusion based on exaggerated media contradictions that things were going well.
A defined wide range for high and low quoting action is driving the action through a bearish trend. This includes prices volatility, going up and down across a 4,000 basis point range — taking the slippage down from its starting range between $14,000 and $10,000 to one potentially falling to $6,000 (started when $10,000 couldn’t stop the correction). To recover the above-mentioned Optimism phase, quotes depend on the bitcoin price climbing back over $10,000, backed by news.
Mathematical Indicators are heading down and a lateral market can’t sustain the action any more. Volatility swings the quotes to up for distribution, and down to press support.
External factors stimulate prices to go to higher levels, recognizing a strong resistance at $10,000 which could became a dangerous distribution trigger, on the way to re-enter our former lateral market between $9,000 and $7,000 — cancelling temporarily the upper targets.
If some News or big financial group’s isolated trading action boosts prices to an upward movement, as happened on April 2019, the next resistances could be considered at $12,000 and $14,000.
Japanese Candlestick Analysis’ Fairy images reflect that the bullish upward movement is over, and offer’s Crows seems to be organized enough to prevail against Soldiers from demand on an imaginary battlefield between the $12,000 and $10,000 level. This would lock the activity for two months between $9,000 and $7,000, if the market slips down.
Elliott Wave Theory’s upward sequence is also over, and Bollinger Bands Analysis marks the spot that prices crossed down the center reference, changing current pattern to a bearish-sideways profile movement. Every recovering action could start with an up-shift startup to overcome $10,000, which could then face and survive a potentially heavy distribution action.
What do you think will happen to the bitcoin price? Share your predictions in the comments below.
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Image via Jon Southurst
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