Bitcoin Price Technical Analysis: Hoping for That $3100 ‘Trigger’
Did you think the bitcoin price was going to crash all the way to 1st of August and beyond? If so, we hope you didn’t sell your stash. After that near-death experience which saw the price dip below $2,000 bitcoin has rebounded back to $2,700 and above. In this week’s technical analysis, the charts say to watch for a “trigger” point that could push the price even higher.
Bitcoin Price Technical Analysis
Prices have bounced back and forth between the psychological levels at $3,000 and $2,000, reacting mainly to contradictory news and media pressure. Theoretical bouncing levels could be evaluated according to Gann Angles Theory and three overlapping figures at $2,600, $1,900 and $1,500. Meanwhile, the technical goal is still at $3,500 with a trigger at $3,100 which could release an up-rally to higher technical objectives.
After a big triangle finally broke down and sent prices back to $1,900, a new flag has appeared in the chart. This one points to that trigger level near $3,100 — which could release a big up rally to bring quotes to double. That is, if it confirms.
Some good news: the $2,600 level is active again as a support — and, if prices get under it, the technical objective of the activated “head and shoulders” figure (which is still active at $1,500) could attract greater trading action.
Powered by a little flag, the prices are trying hard to reach the trigger zone near $3,100 to release an upward rally to $3,500. However it’s a tough journey — the psychological $3,000 level works as a resistance due to Round Numbers Theory.
According to indicators, a lateral sideways market could take place between $2,400 and $3,000 with high volatility. This may send many false signals while investors and traders place their strategies again.
Do you agree with this analysis? Tell us in the comments.
Images via Bitstamp, Pixabay
NOTE: This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.