Bitcoin Price Is Now Below $7K – What Does It Mean?
The bitcoin price has extended its bearish correction to $7,000 USD and now below, turning on a reverse reaction chance. If you’re trying to make sense if it and wondering what could happen next, read our weekly technical analysis report.
Bitcoin Price Technical Analysis
The bitcoin price finally matched and crossed down to the ascending curve of a Rounded Bottom Formation, which hasn’t been able to muster the General Will for a reversal movement so far. Considering Gann’s Angles criteria, quotes re-entered a near scope bearish channel influence zone, and started a new sideways movement to balance the selling pressure at $7,000. According to Mass Psychological Analysis, a Hope phase could be affected by external factors that knocked down the trend to its current level, and from here it depends on News for a reversal reaction — which could lead the action higher and back to $8,000.
By the extension of the current bearish correction to $7,000, mathematical indicators arrived at their lowest possibility and then started to turn up, backing a temporarily balance among offer and demand.
While quotes try to walk laterally away from this new bearish channel influence, prices could try to test an $8,000 resistance, where the Rounded Bottom curve, working together with high volatility, could boost an uptrend reaction to drive values closer to $9,000 — before starting the march to higher levels.
Japanese Candlesticks’ imaginary Offer’s Crows took hold of battlefield to extend its bounds another 1,000 basis points (down) to $8,000. Demand’s Soldiers are too scattered and confused by external factors to attempt any strike back to re-enter it.
On the other hand, mathematical indicators are ready to bring logistical support to prevail in battle, and depending on decisions yet to be taken among institutional investors, if and when the action balances, the trend could chain up successive technical reactions to overcome $9,000 on the way back to $12,000.
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]
Images via Pixabay, Ramiro Burgos
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.