We’re all excited that the bitcoin price has gone up again. However, it has to strengthen in a lateral market before trying to overcome $12,000 resistance.
After leaving behind the strong descending resistance by breaking the tough $8,000 level, prices could tour a lateral sideways market between a resistance near $10,000 and a support around $7,500 before bullish consensus increases again to boost prices higher.
According to Fibonacci calculations, the reversal movement over the last 15 days has its own retracement numbers — first at $8,500, second at $8,000, and third at $7,500. We could see bouncing activity in that area due to external factors that could delay an upward movement.
Political factors pulled the bitcoin price out of the bearish channel, cancelling very low technical objectives. Now, mathematical indicators anticipate another upward movement.
A very wide channel is going on, covering all price oscillations. If the sequenced signals confirm the bullish development during the next week, a rise to $12,000 could start a big reversion to the historical highs near $20,000. A wait and see time period is on until signs show up in the chart to release the bullish trend.
Japanese Candlestick Analysis reflects a fantasy situation of tumult among Soldiers and Crows that would depend on which of the two sides receives reinforcements first. The outcome of this scenario will define the next upwards or downwards movement.
The potential bull rally to $12,000 is backed by Formations Analysis and development theories, while more crows are expected to arrive if mathematical indicators do no confirm their pending bullish signals.
Another situation in which the bull rally could be delayed involves the current lateral marking holding for too long — testing $8,000 — exposing the market 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.
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