Bitcoin Price Heading to $2,000 As Sell-Off Continues
With the bitcoin price continuing to fall, it looks like we may have to start all over at the very bottom. Based on the charts, bitcoin is on its way down to the $2,000 USD support level — depending on external factors.
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts
Bitcoin Price Technical Analysis
The bitcoin price went below the $6,000 support to enter an accumulation zone near $4,500. Prices briefly reacted, giving bullish signals as expected, but they failed in the attempt to towards the upper level forecasted by Fibonacci´s numbers between $8,000 and $10,000.
An extensive lateral market and a lack of bullish consensus turned the wait-and-see attitude into a panic sell, which canceled any remaining support, allowing external factors to knock prices down to break the historical $4,500 floor, sending the action to next technical reference near the $2,000 level.
According to Mass Psychology analysis, the current Disbelief phase is stronger and could change to Capitulation below the $3,000 level, while the Hope phase should arrive when and if prices reverse to $6,000.
According to mathematical indicators, prices will try to sustain themselves into a lateral sideways movement, recognizing $4,500 as their new resistance. An intermediate sustaining level can be analyzed at $3,000, based on round numbers theory, while real support can be confirmed at $2,000 level by the August 2017 referential rebound.
The next congestion area can be expected between $4,500 and $5,500, but values would need external factors to back any upward movement if they try to cross the congestion area to the up side.
Now, we have to downgrade every horizontal resistance we used to consider when the action was over $6,000, converting them to support levels in the new scenario. Here, the references for a lateral market are $4,500, $3,000 and $1,800.
According to Japanese Candlestick Analysis, Offer’s Crows have shown their strength again by defeating demand’s Soldiers, which retreated down from $6,300 to current values instead of facing them on the former 1000-point battlefield, settled from $6,500 to $7,500.
Retreating Soldiers could keep running down to the $2,000 support before finding any reinforcements to organize a new battle plan, unless some external factor contains the free-fall in $3,000 area, encouraging soldiers to face the Crows with a chance to prevail.
After the Crows confirm the $6,500-$7,500 range as a distribution territory, a new 1000-point battlefield can be expected between $4,500 and $5,500 with similar conditions.
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]
Image via Capterra Blog
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.