Still Not Looking Good: Bitcoin Price Continues Trending Downwards to $3,500
Don’t let the recent sideways activity get your hopes up. According to the charts, the bitcoin price is building a big inverted flag pattern that will dive deeper into the bearish channel before we see a true rebound.
Bitcoin Price Technical Analysis
The bitcoin price currently holds a lateral sideways market, although a strong bearish channel is still working on driving prices down, meeting the conditions to break all support levels in a hard dive towards the target between $5,000 and $3,500.
Bullish consensus is low now, but is increasing while values slide down. Most analyst opinions estimate that a new cycle could begin from the bottom, to break the descending resistance near $6,000, in a big theoretical reversal movement to $14,000 according to Fibonacci retracement numbers.
According to Gann Angle Theory and Mass Psychology Analysis, as a first step, the markets would need to overcome the panic phase and leave behind the Fall angle stage.
Looking at mathematical Indicators, quotes could head down to accomplish bear objectives between $5,000 and $3,500, pointed by all development theories before climbing back to $14,000.
Considering the last year´s successful signals, there are reasons to expect a deep fall and a rebound, which should end the dominating bearish trend, crossing the channel to break it and leave it behind for good.
However, based on current values, the relative market strength seems to be exhausted and the bitcoin price needs to back down from the current level to reinforce a rise and change the cycle to start a big rise — probably to new all-time highs of $50,000 and beyond.
Bearish signals reflected by Japanese Candlestick Analysis still appear in the charts. Following this ancient analysis method, because bearish days outnumber bullish days, soldiers (similar to bulls) would retreat back to seek refuge near the theoretical technical objectives, to avoid being eaten by the crows (similar to bears) from the offer.
Support can be estimated between $5,000, and $3,500 at the bottom of the channel where a bounce is expected. Volatility is expected to increase and spark a technical reaction when prices arrive to $5,000.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.