There is still hope for a massive bitcoin price rally. However, we may have to wait a little longer, as the bears are putting up more of a fight than expected.
According to Formation Analysis, prices could keep on lateral sideways market until any external factor boost the marketplace to overcome the $10,000 resistance, or bullish consensus backs the confidence of principal operators about values leaving behind the recent major bearish patterns.
However, those patterns are still influencing the action, delaying the next upward movement to Fibonacci retracement objectives over $12,000.
On the other hand, theoretically, values could go lower and bounce again near support levels at $7,500 and $6,000. But if the objectives are higher, this movement would be balanced by observers and outsiders when trying to re-enter to the game.
Massive Psychology stimulation strategies could be expected through rumors and media pressure while quotes maintain this intermediate value. Even though the trend had changed to the up side, lower prices and volatility could be expected.
Some mathematical indicators anticipate an upward movement, but have not yet been confirmed by their complementary oscillator groups. Volatility is supposed to increase to contribute to a reversal upward rise to Fibonacci´s 38.2%, which is acting as a resistance and would work as a trigger if overcome to confirm the bullish development during the next weeks.
A rally to $12,000 could start a big reversion to the historical highs near $20,000. A wait and see time period is still on now, and will last until a second set of signs appear in the chart to release the bullish trend.
Last week, Japanese Candlestick Analysis reflected a fantasy situation of tumult among Soldiers and Crows that depended on which of the two sides receive reinforcements first to define to the upwards or downwards movement.
Because mathematical indicators did not confirm their pending bullish signals, the expected Crows arrived to scare Soldiers who, following the same fantasy explanation, retreated to take refuge at lower Fibonacci´s levels among $8,000, $7,500 and $6,000, instead of fighting and losing.
Now, the chance of a bull rally to $12,000 is backed again by Formations Analysis and development theories, but quotes should be far enough from the bearish channel that they just left to transmit confidence to the demand. During the current lateral market, soldiers are expected to receive reinforcements, but prices are exposed at this stage to unpredictable external factors.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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.
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.