Bitcoin Price Needs More Strength, But Where Will it Come From?
It’s looking like the bitcoin price won’t be able to cross over the $5,500 USD distribution zone to re-enter the lateral market from December 2018. Therefore, we may see some downward movement while bullish consensus tries to gain strength.
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Bitcoin Price Technical Analysis
Even though bullish consensus seemed to be high all last week, it hasn’t been able to start a new upward cycle by itself, without mathematical indicators backing it. The wait-and-see trading posture seems to be prevailing among all market participants. This holding pattern will likely continue until investors can determine the reliability of average basic signs.
The current lack of demand has created a lateral distribution area between $5,000 and $5,500, which will hold for a while as the market settles on a definite trend. If external factors fail to boost the bitcoin price beyond $5,500, we can expect the distribution zone to be re-adjusted to the $4,750-$5,000 range.
On December 2018, while the ongoing trend seemed to recognize support at $6,000, the bitcoin price suddenly dropped from $6,000 to $3,000, where a Double Diamond Pattern supported an imaginary Round Numbers Theoretical contention. This fragile barrier was good enough to allow prices to run into the current sideways lateral market for 5 months so far.
A month ago, values crossed the lateral channel to the upper border, boosted only by a single group, and failed in the attempt to cause a sympathetic bullish movement to higher levels. The current wait-and-see attitude in the market has delayed every rise so far, and another Double Diamond pattern has appeared in the charts. The re-emergence of this pattern serves to create doubt about the continuity of a bullish bitcoin price rise. If the current sideways movement keeps running on, all indicators would show new signals to consider — with $4,750 constituting a reliable floor.
Following Japanese Candlestick fairy examples, Offer´s Crows reorganized themselves to control current distribution area at $5,000. Meanwhile, Demand´s Soldiers fled again to safe positions at a lower level near $4,750.
Combining this idea with Fibonacci Retracement Levels, supports can be expected between $4,750 and $4,500. After prices jumped back into the Bollinger Bands area, a correction level emerging between $5,000 and $4,500. However, that theoretical defense could be razed to a lower level near $2,800 if investors maintain their wait-and-see posture. Nevertheless, the bullish trend could anticipate its start from an average point between $2,800 and $3,500.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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