Get ready to take the plunge. The bitcoin price has entered a large distribution area that could break support at $900 and test $700 — maybe even $600. So it looks like the $1000 bitcoin could be short-lived.
Bitcoin Price Technical Analysis
After repeatedly running into resistance at $1100, the bitcoin price has entered a distribution area that will likely send the markets downward. This new movement could test the weak support at $900, which is probably not strong enough to balance the distributive supply. As a result, resistance at $900 would likely break, sending the price down to $700.
When the price arrives at this main support, it should perform a “dead cat bounce” to recover at $850 axis.
However, with bitcoin quickly going from a purely speculative asset to a practical economic tool the probability of the currency entering a new main trendline channel is increasing, making it possible for the trends to start over as they try to find their place in the mainstream economy.
According to indicators, volatility is still increasing, and quotes are ready to go down to retest the $900 support.
Since this support level no longer has enough strength to stop the pullback, prices will continue to fall towards $700 over the mid-term. From there, a parabola pattern may allow prices to rebound and attempt stabilization at $850. Afterwards, bitcoin may decline again slightly, reentering the main trend channel between $600 and $700.
According to Gann Angles Theory, prices have reached the last intermediate resistance, which has inadequate strength. So now the long-term markets look bearish, on a trajectory towards $700.
Japanese Candlestick Analysis complements this projection, with its well-known figures allowing an aggressive, downward movement that will not recover in the short term without fluid volume. In such a scenario, a lateral sideways market would occur at $600, with room to move around towards $850 for at least a month.
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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.