Bitcoin Price Falls Back As Bulls Continue Attempts to Rally to $8K
As the bitcoin price continues trying to break out of the ongoing bearish trend, it could test the $6,000 USD support again. This test will be the next step before another attempt at crossing the $6,000-$7,500 resistance zone.
Also read: Tezos…From Fiasco to Mainnet in 365 Days
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts
Bitcoin Price Technical Analysis
Prices have recognized $6,000 as a support throughout 2018, and it could be tested again before trying to rise across the $6,500-$7,500 congestion area on the way to higher levels.
If this back swing confirms the $6,000 support and bounces, values could rise to the upper border of the range at $7,500. From there, a second movement to $8,000 would be expected after a profit-taking run from $7,500 to $7,000.
If the bitcoin price finally overcomes $7,500, higher objectives would be activated from $8,000 to $16,000, with an intermediate resistance at $12,000.
A triangle formation is still repeating in the chart, always recognizing the same $6,000 support level. The lower bound of the congestion range at $6,500 could work as a temporary, intermediate resistance, sending quotes back to the $6,000 support, from where a rebound would begin.
A round-trip movement could bring prices back to the present $6,500 level from below, turning this current resistance into a trigger for the next market momentum. Higher target levels could be activated after a backward swing.
According to Japanese Candlestick Analysis, demand´s Soldiers could be defeated by offer´s Crows when they try to advance into the 1000-point battlefield established between $6,500 and $7,500.
If that movement confirms, Soldiers would retreat to the $6,000 support before restarting the upward march to intermediate resistances, which can be considered from $6,700 to $7,000.
Volatility is expected to increase when prices go down to the support, then back to higher levels, while Mass Psychological Analysis change its phase to optimism.
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.