Thursday, October 6, 2022

Bitcoin Price Pulls Back Before a Big Push to $5500

Bitcoin Price Pulls Back Before a Big Push to $5500

The bitcoin price has been going up and down quite a bit over the past week. However, the technical indicators still point to $5,500 in the near future, just with a little more up-and-down action than anticipated. So strap in, because we’re going to hit some turbulence on the way up.

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Bitcoin Price Technical Analysis

Long-Term Analysis

bitcoin price technical analysis

Prices started the 5th phase of a major, upwards Elliot Wave. This movement could bring the bitcoin price up to $5,500, breaking the current psychological barrier at $5,000.

The first support level in this movement stands at $3,000. However, the critical support zone that gives the strongest bullish signal is evaluated at $3,800.

Mid-Term Analysis

bitcoin price technical analysis

According to Elliott Waves Theory the major 5th up-wave involves a new zig-zag movement, similar to what happened in previous waves during March and July.

This time, a similar movement could bring prices as high as $5,500, after which a sideways market would emerge in an ABC mini-phase. A rising channel backs this theoretical criteria, and indicators further suggest that quotes could keep climbing, going as far as to surpass the $5,000 reference.

Short-Term Analysis

bitcoin price technical analysis

A flag formation in the short-term could prices above the $5,000 resistance, where selling pressure could start a small correction before consolidating and continuing to rise.

According to indicators, the bitcoin price will likely stabilize near $5,500 in the short term. Japanese Candlestick Analysis supports that analysis, showing accumulation activity that will reinforce the general strength of the market.

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

Images via Pixabay. Price charts courtesy of Bitkan

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

Bitkan is a strategic partner of Bitsonline.

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