Bitcoin Price Going Sideways, But Bearish Signals Are Strong
The bitcoin price hasn’t crashed further (well, not drastically) since last week. But it hasn’t bounced back in a meaningful way either. Our weekly technical analysis shows bearish signals are still quite strong, though there’s always the chance something unexpected may happen. Read on…
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Bitcoin Price Technical Analysis
While waiting on good news from the mass media or Fundamental Analysis, prices keep going lateral, exhausting their mathematical indicators. This long sideways movement complicates the bullish chance for the near term, but in spite of this, an external factor will always be able to boost prices upwards if one appears by surprise.
If nothing stimulates the market to the up side, values would head down to old 2017´s $2,000 USD support to test a “V” bounce near $2,500. A lack of Bullish Consensus is driving Mass Psychological Analysis to a sensitized stage, which is at the point to change our current Disbelief phase to Capitulation at weak investors’ hands. But it’s not all bad — these investors could give their assets to the accumulation strategies of institutional investors, kicking off a reversion to $4,000 to start a new long term cycle.
Several formations appeared and failed (as usually happen in lateral markets), bringing confusion and contradictions to the current technical scenario. Again the wait-and=see attitude prevails among operators, harming the chart structure to knock it down. It ignores the $3,000 theoretical level to bounce at $2,500, anticipating 2017´s old support which remains near $2,000. The recent horizontal channel, when transferred to the down side, reflects the next support which can be expected coincidentally at the same level.
In early November 2018, Crows took control of the $4,000 level, pushing Soldiers down to $3,000. Japanese Candlestick images, combined with Bollinger Bands, seem to be useful to explain these market conditions, reflecting that offer’s Crows descent to $3,500 to stifle every advance, and becoming strong inside the upper band.
Soldiers of demand are not strong enough to keep on marching higher than $3,700 and are abandoning the battlefield again. This could reorganize a reversal “V Bottom” plan before arriving old 2017´s real support, at the $2,500 level.
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. To order, send an email to [email protected]
Images via Ramiro Burgos, Pixabay
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