Bitcoin Price Heading for Another Drop After Two Months of Stability
It’s been another uneventful week in the charts, but some movement could happen soon. According to technical indicators, the lateral bitcoin price market could break down and turn into a bearish channel.
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Bitcoin Price Technical Analysis
If nothing arrives to stimulate the market to the upside, the bitcoin price will head down to the pre-bubble support at $2,000 USD to test a “V” bounce near $2,500.
Contradictory opinions and news are driving Mass Psychological Analysis from the current Disbelief phase to Capitulation where weak hands would give up and abandon their positions, which favors institutional investors’ strategies. This transition has helped form the approaching “V” bounce, and if it confirms there should be a reversion to $4,000 to start a new, long-term bullish cycle.
Again, the the-wait-and-see attitude has prevailed among traders, harming the chart structure and knocking it down, overpowering support and going sideways for three weeks so far.
If the trend brakes down the current lateral market, the plunge would ignore the theoretical support at $3,000 and bounce at $2,500, anticipating the pre-bubble support, which remains near $2,000. Mathematical indicators are also flat in an oversold area, reflecting the attitudes of most traders.
Revisiting the Crows’ activity in the charts, they’ve dominated the action since September 2018, pushing demand down over and over by taking hold of the upper Bollinger band, forcing Soldiers to retreat from $6,000 to $3,000 after two months of sideways movement in the bitcoin price.
Now, offer distribution controls the $4,000 level, pushing soldiers down to $3,000 and below. This has caused every advance attempted to be stifled, extending the sideways pattern into a second month and exhausting the current technical indicators.
What do you think will happen to the bitcoin price? Share your thoughts 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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