Bitcoin Price Testing Different Patterns, Trying to Break Resistance at a Tough Level
BTC holders got a pleasant surprise over the past week, as a bitcoin price that appeared to be sinking gradually below $7,000 suddenly reversed its course and shot back to $8,000 and more. But is it a sign of more promising things to come, or will the weight of bitcoin’s various woes drag it down once again? Let’s look at the charts.
Bitcoin Price Technical Analysis: April 16th, 2018
Long Term Analysis
Holding a lateral market, bitcoin could anticipate a strong reaction to the up side if it brakes the descending resistance at the tough present $8,000 level. But if it fails to do that, a technical bounce could be considered at any quote below $5,000. Bullish consensus agrees to believe the bearish Big 2 wave from Elliott’s theory should meet at a random point in that area, with other two counts from the same theory. For example, the mid term V bearish wave and the mini 5th nearby bearish wave, all matching to end the current cycle and start a Big 3 bullish movement towards $14,000.
Mid Term Analysis
The $3,500 target could be canceled if the side market manages to get prices out off the triangle pattern to the up side, and keep the values over the strong descending resistance to anticipate a bullish rally.
On the other hand, if quotes fail again to cross the resistance line (as has happened repeatedly since December 2017) quotes could fall below $5,000 to find any bouncing price between that level and $3,500.
This could be evaluated as the main chance to change the trend from the bottom, starting a strong upward movement from there. Fundamentals and news are confused at the present level, but if an external factor like war can hold the current brief up movement to exit the bearish channel, volatility should increase and all decisions should be made again.
Short Term Analysis
New investors entered this market as a result of some asset protection strategy before recent world political events, swapping to Bitcoin from other financial or real state positions.
Some of those (temporary) new investors would always leave the market as soon they find an asset similar to the one in another part of the planet, once again weakening the crypto rise.
This transitory reinforcing activity could contribute to an anticipation of a break upward in prices out of the bearish channel. This reflects some technical signals which bring to the party many observers who were waiting for lower objectives to be accomplished.
According to Japanese Candlestick Analysis, an Evening Star could even end the upward reaction just at the point where it crosses the descending resistance, and send values down again — as happened twice last March.
If the bitcoin price goes up or even lateral for another three days, they would leave behind the bearish channel and follow the fantasy of the same old criterion: the soldiers will defeat the crows.
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.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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