Wednesday, May 25, 2022

Technical Analysis: The Bitcoin Price Roller Coaster to $1000 and Beyond

Technical Analysis: The Bitcoin Price Roller Coaster to $1000 and Beyond

The recovery from last week’s bitcoin price drop serves to support technical projections of a second parabola movement. This time, it looks like the price will reach $1100, and then quickly return to $700.

Also read: The Moonshot Returns: Bitcoin Price Set for Repeat Rise to $1100

Bitcoin Price Technical Analysis

Long-Term Analysis

Bitcoin Price Technical Analysis

Prices have started a second parabolic movement pattern to reach $1100, and will fall back to the $700 level as a technical support.

After that, if this kind of roller coaster pattern confirms, prices will return to the $850 axis with a lateral sideways trading market. In this sideways market, traders will run into resistance at $1000, reinforcing the bullish consensus that seemed to characterize the start of 2017.

Mid-Term Analysis

Bitcoin Price Technical Analysis

According to technical indicators, bitcoin price volatility is increasing, and prices are in a rising towards the technical objective at $1100. If the markets accomplish this objective, quotes will quickly fall back to $700 and stabilize, completing the projected parabola pattern.

Recently, traditional media has removed Bitcoin from principal news, and the average person is not paying attention to the price these days. However, the coverage Bitcoin is getting seems to have turned from price speculation to usability of the currency as an economic tool, calling forth the intervention of political authorities.

The moves made by the authorities, such as the People’s Bank of China’s investigation into Chinese bitcoin exchanges, will undoubtedly have an impact on fundamental pressures guiding the bitcoin price.

Short-Term Analysis

Bitcoin Price Technical Analysis

According to Japanese Candlestick Analysis, the current bullish movement is strong enough to take the bitcoin price to the $1100 objective, but no further.

According to Fibonacci retracement theory, quotes could recover to this mentioned technical goal given a continuous rise in trading volume. In reality, volume indicators are too erratic to reinforce a continuous rise in price at this point. Therefore, if this inconsistent volume persists, we can expect a roller coaster pattern of up and down price movement on the way to $1100, and then a drop to $700 once the unstable volume becomes incapable of supporting the new highs.

What do you think will happen to the bitcoin price? Let us know in the comments below.

Cover image courtesy of Pixabay.

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

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