The bitcoin price is still floating at the $1100 resistance, even going as far as to test the historical all time high at $1200. However, the whales are still trading in bearish patterns, creating a distribution zone that could send the price down to $600.
Bitcoin Price Technical Analysis
After breaking the 2013 record high, a new Gann Angles Theory projection must be considered. In this new analysis, two new support levels have emerged at $870 and $550.
Currently, however, the bitcoin price remains far above both support levels, riding the excitement generated by the news of the Winklevoss Bitcoin ETF’s pending approval. Once live, this fund will bring bitcoin into the world of mainstream, institutional investors, which could unleash an unprecedented bull run.
At the current levels, with volatility still increasing, $1100 acts as a trigger point. If the price falls below that point, it will start a fast decline to $600. From there, a new cycle will begin and consolidate into a lateral sideways market, keeping the price between an $850 resistance and a $650 support.
According to indicators, volatility and bearish consensus are still increasing in anticipation of a big price movement—either up or down.
Even with last week’s rally that broke the $1100 resistance, the bulls’ only support comes from news and fundamental indicators, which are at odds with technical projections. Looking at the charts, a decline to $600 is still in the forecast, although further away than previously thought.
A key reversal signal has emerged at the top of the chart ending the upward movement. Prices relative to strength can’t break up the resistance at $1100 due to manipulation signals giving fake support.
Indicators only support short-lived sustainability quickly followed by a hard fall in the short-term. If this scenario plays out, a lateral sideways market could emerge and hold for at least a month with resistance at $850.
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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.