The big bitcoin price rally to $2000 has been fun, but it’s about to get even better as traders gear up for another push to $2600.
Bitcoin Price Technical Analysis
The current rally started at $850, matching the wide extension of the bull run from 2013. Following that pattern, one might expect a technical correction on the horizon.
However, indicators point at a zig-zag patterns—due to profit-taking—with a continued upward trend leading to a new objective at $2600.
To get the picture of where the bitcoin price will go in the long-term, focus on Fibonacci Retracement Numbers. These number set the zig-zag movement between $850 and $2100 as theoretical bouncing points. In between, the price balance among $1650, $1475 and $1325 in a lateral sideways market.
This scenario has resistance at $2100 that traders must break before the rise to $2600 can continue.
The current, mid-term objective is $2200, with quotes still bullish—even when considering profit taking that could drive the bitcoin price down to the theoretical supports.
The lowest support derived from Fibonacci numbers is estimated at $850. This theoretical floor allows for volatility to increase significantly without threatening the upward trend in the mid-term.
At present, all indicators are overbought, but new traders driven by media hype continue to enter the market and drive the rally forward by paying the high price of entry.
In the short-term, this upward rally is extremely sensitive to news and fundamentals that process every event as a bullish sign.
If the media ignores the bitcoin price for a while, trading would settle out into projected technical patterns, but for now Bitcoin remains the center of mainstream attention.
According to Japanese Candlestick Analysis, the rising short-term support goes through $1600. A smooth pullback from current prices to $1750 would further solidify that support and allow the bitcoin price to continue climbing.
What do you think will happen to the bitcoin price? Share your predictions in the comments down below.
Image via ITP Blog
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.