Bitcoin Price Ready for Return to 700 After Reaching Resistance Area
Bitcoin investors and the media alike were re-energized these past few weeks, with the price heading back over $1000 USD. But it may not go any further and could well fall right back, according to our technical analysis.
Prices have reached the resistance area and bullish consensus has disappeared. This weak scenario should reinforce the general idea of a downward movement consensus, to test the first support at 700. From there, a dead cat bounce could happen with low volatility landing the quotes near 850 from below — recognizing the main trendline channel that always drives the prices from the beginning.
According to indicators, volatility is still increasing and prices finished their rising phase near enough to the technical objective at 1100. This goal is now accomplished because they’ve reached a distribution area and the quotes will fall back to the bottom at 700 — to rebound and stabilize later from below at 850. Traditional media reinstalled Bitcoin to front page status with a lot of explanations and contradictory opinions, and common people paid attention again to the opportunity of build their treasuries at the 700 reference.
According to Japanese Candlestick Analysis, the current bearish movement is strong enough to reach the 700 objective — but no further from there. According to Fibonacci retracement theory, quotes have already recover near enough to this distribution technical goal at 1100. It now depends on volumes to keep on rising to higher levels, but indicators are too erratic to reinforce a continuous rise. So the main image is of another rollercoaster up and down movement, hitting 1100 and ending at 700 in an aggressive downward correction. That’s if the volume is not fluid.
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.