Bitcoin Price Defines the Uptrend, Current Lateral Market May Be a New Bottom
The bitcoin price took a break from recent disappointments over the past two weeks, rising back above $7,600 USD. While hodlers breathe a nervous sigh of relief, it’s important not to let emotions take hold. So here’s Bitsonline‘s regular technical analysis to help you understand what may be coming next.
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Bitcoin Price Technical Analysis
After accomplishing its last upward ABC Elliott Wave Theory phase, the bitcoin price left behind a strong bearish trend. It entered a rectangular triangle pattern, which defined in the current lateral market a new starting point for its next bullish trend.
The good news is, successful testing of traditional supports between $6,000 and $4,500 could cancel the possibility of a plunge to a zero target for good. The next stage would take current levels as a new bottom, to consolidate a new cycle in which first targets could be considered at Fibonacci retracement numbers near $12,000.
An inverted Head and Shoulders formation brings a strong reversal signal which could recognizes old Fan lines resistances as supports. The current stage could drive quotes to short term Fibonacci retracement levels between $8,000 and $12,000.
Mass Psychology Analysis considers this current phase as an accumulation one, and if this confirms, prices could reach higher levels after improving on the bullish consensus.
Several signals overlap in the current lateral market: According to Formation Analysis, prices reached the inverted Head and Shoulders’ target and could retreat to $6,800, where more Japanese Candlestick theory’s soldiers would reinforce the bullish trend to drive values towards $12,000.
Mathematical indicators’ momentum allows a bullish development chance, after re-testing intermediate supports between $7,000 and $6,700.
What do you think will happen to the bitcoin price? Share your predictions in the comments section 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]
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