With the Bitcoin Price at $5,000, the Trading Circus Has Returned
The bitcoin price has finally seen a major movement, shooting up from $3,800 USD to $5,000. However, the market’s collective emotional reactions remain scattered, bringing back a phenomenon known as the “Roman Circus.”
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Bitcoin Price Technical Analysis
After a four-month lateral market, the bitcoin price surprisingly shot upwards last week, rising from $3,800 to $5,000 in just a few days. However, rather than igniting a bull run, the market did not react as strongly as some may have hoped. Instead, another lateral market emerged at the $5,000 level. With continued contradiction between technical and fundamental data, this new lateral market is just as dominated by emotions and external influence than the last one.
Volume retracement constitutes an important indicator of this confusion, and when it’s combined with the disbelief phase, a wait-and-see pattern emerges. That pattern will hold until we can determine whether average basic signs are reliable. An evaluation of basic support and resistance levels sets a recognized support area at $3,500 as usual, while a new resistance zone has surfaced at $5,500.
According to the charts, the last major downward movement in November 2018 began with a false bullish swing from $6,000 to $8,000. Following that move, the price plummeted to $3,000. The recent upswing to $5,000 may mirror that false bullish push from last November, as the market remains dominated by emotions and external influence.
Currently, the abrupt bitcoin price swing has changed all indicator values, immersing analysts and operators in confusion. The bearish cycle did not end properly — with a final drop to $2,800. So now, technical indicators are uncertain regarding the future of this bullish movement.
Bollinger Bands have become wide, losing their reliability at the moment. Japanese Candlesticks suggest that offer’s Crows are now administrating a new distribution area between $4,800 and $5,500. Meanwhile, demand’s Soldiers wait at a lower level — near $4,500 — planning to enter the battlefield when they have a higher chance at victory.
Because of this confusing activity, another fairy image has re-entered the picture: the Roman Circus. Here, demand is represented by the Christians, while Lions take on the role of the offer. According to this imagery, the best chance for the Christians (bulls) to gain victory is to become so numerous that the Lions can’t devour them all. Once the carnage of the Roman Circus ends, whoever is left standing takes control of the Coliseum, the metaphorical representation of the bitcoin market.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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]
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