The bitcoin price continues to laugh at technical indicators, holding at $1100 and opening two new scenarios that could see the price climb even higher, avoiding the long-projected decline to $600.
Bitcoin Price Technical Analysis
According to Elliott Wave Theory, the bitcoin price bounced from $900 to $1100, with positive news acting as a relief to end the “B phase.” Once that phase ends, technical indicators show the price heading downwards to test support at $850.
However, depending on news and fundamental factors, the price may forego a correction and sustain the present levels. If this scenario plays out, it would be in complete disregard for the abundant bearish patterns that have pointed to an aggressive fall to $600 for several weeks.
If fundamentals overpower technical factors, once again avoiding a drop to $600, a new technical analysis will be necessary.
The present recovered level at $1100 matches Fibbonacci retracement numbers. According to that theory, the bitcoin price should turn down again from this point forward.
On the flip side, if the current renewed demand sustains the bitcoin price and drives it to the upside towards $1300, volatility could increase. Such a situation would adjust the bearish target upwards from $600 to $850. If that new lower bound gets tested successfully, a new rising channel will be confirmed, dismissing the prolonged projection of a drop to $600.
In the meantime, no other immediate supports between $850 and $600 exist. So the market could still go either way depending on activity in the interim.
Going forward, $850 represents the limit between two scenarios:
Scenario A: The present distribution area is sustained, keeping the bitcoin price in the $1100 range.
Scenario B: An aggressive round-trip needle pattern triggers, sending the bitcoin price to $600 and back again—leveling out at $850.
Taking Gann Angles Theory into consideration, the resistance levels for Scenario A are $1150 and $1300. In Scenario B, there are no supports or resistance levels between $850 and $600, meaning that the bitcoin price could wildly fluctuate within that range if Scenario B plays out.
Do you agree with this analysis? What’s your prediction, and what are you doing about it? Let us know in the comments.
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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.