Bitcoin Price Still Looking Hopeful as Bulls Continue Gaining Strength
An upward movement is still building in the markets as the bitcoin price works to combine several different technical criteria needed for an upward push. These factors are contributing to strengthening support at the $3,000 USD level, from where the bitcoin price will attempt a reversal movement.
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Bitcoin Price Technical Analysis
The bitcoin price market has entered a fragile psychological scenario, backed by nothing but imaginary support based on Round Numbers Theory, which sustains the current $3,000 level.
This preliminary reaction could be considered a dead cat bounce since the pre-bubble support from 2017 remains below $2,000. However, if values keep progressing in a sideways pattern, and the market confirms an inverted head and shoulders formation between $3,000 and $4,000, fundamental factors would kick the action upwards. That would turn the current Disbelief phase to Hope at $3,500, avoiding a drop to lower levels.
According to basic Formation Analysis, after an Inverted Flag drove values to $3,000, a psychological reaction started a brief sideways trend, which broke the 45-degree bearish market and derived the quotes in an Inverted Head and Shoulders formation, canceling the plunge.
If that scenario confirms, the market will start building a second shoulder with a reversal bounce before reaching $3,400. In that situation, the current combination of Mass Psychology Analysis, Fibonacci Retracement Numbers, and long-term moving averages would spark a reverse movement to $6,000.
Focusing on Japanese Candlesticks’ fairy images, and processing them with Elliott Wave Theory, half of offer’s Crows are descending from the battlefield between $4,500 and $5,500 to the $4,000 level, losing their strength by dividing the selling pressure.
Meanwhile, the Soldiers of demand, after finishing a descending Elliott Wave, seem to be organized and waiting at the theoretical “X” bouncing level at $3,400 to anticipate the battle, starting a clean and visible ascending Elliott Wave, which would try to advance to the lower edge of the distribution zone at $4,500.
On the other hand, if the Crows fiercely attack the “X” level at $3,400 and receive reinforcements first, prices would head down to the pre-bubble support at $2,000.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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