Bitcoin Price Goes Lateral for Another Week, but a New Cycle May Bring Surprises - Bitsonline

Bitcoin Price Goes Lateral for Another Week, but a New Cycle May Bring Surprises

So, you were enjoying the short bitcoin price bull run before the wind got knocked out of your sails? Welcome to 2018. But if you’re thinking it’s all just guesswork, think again — our weekly technical analysis will help to make some sense of the madness.

Also see: Goldman Sachs Pronounces Bitcoin Dead. Time to Buy?

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Bitcoin Price Technical Analysis

Long-Term Analysis

Bitcoin Price chart 5 August Long

Before the big rise of 2017, technical indicators reflected a volatility increase and brought strong bullish signals, then confirmed them. Finally the bitcoin price went up to historical records for that time, near the $7,000 level.

Those registers were immediately improved with a fast, parabolic bullish rally to $20,000, but three months later quotes were back in same $7,000 level, entering a triangle formation which stabilized the action so far to these days.

When prices defined that triangle pattern to the up side in March 2018, the bearish target at zero was canceled and values started developing the triangle pattern, overlapped with a lateral market. There were plenty of Mass Psychology strategies and confusion, until the same strong signals seen in 2017 appeared again — from same technical indicators — to activate a similar first price adjustment to higher levels, as happened in August 2017.

This could be followed again by a kind of fast parabolic bullish rally and back, this time to even higher records than registered in 2017.

Mid-Term Analysis

Bitcoin Price chart 5 August mid

Fibonacci Retracement levels between $12,000 and $17,000 seem to be next target for the bitcoin price if Japanese Candlestick fantasy examples are right. If demand Soldiers take hold of the battle against Crows crossing to the upside, several resistance levels to reach a new congestion zone where Crows of offer would be expected.

The bullish consensus increases, while mathematical indicators lower to back a rise in prices when they revert. Considering the current lateral market as a new bottom, supports can be analyzed between $6,700 and $7,300. According to Mass Psychology analysis, thanks to a lack of credibility in contradictory opinions from the biggest banks and financial institutions about cryptos so far, any news, rumors or fundamental data (even negative) would reinforce the bullish trend chance.

Short-Term Analysis

BitKan Bitcoin Price Chart 5 August

Following Japanese Candlesticks fairy examples, sleeping Soldiers could be awakened and jump into the battle to drive the action over the $8,000 resistance level, and reach the Fibonacci first retracement target near $12,000.

Mass Psychology Analysis considers the present phase as an accumulation one by Smart Money criterion. If this confirms, and after these kinds of players fulfill their marketplace, banks and financial institutions should enter the market. They’ll be followed by the public, encouraged by traditional media, to reach the target and probably start a parabolic movement up to new records and back — creating a consolidated bullish trend tuned by Fibonacci´s rules.

What do you think will happen to the bitcoin price? Share your predictions in the comments 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]


Image via Pixabay

This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.

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