The Bitcoin Price Could Be Reaching a Turning Point, Time for Optimism?
Although things still look bleak for the bitcoin price, we could be reaching a turning point — for better or worse. According to the charts, the price is testing the current $3,000 USD level to define the next uptrend, or the continuance of the bear market.
Bitcoin Price Technical Analysis
The $2,000 support from 2017 could be anticipated by Round Numbers Theory at the $3,000 level, where prices are trying to sustain without any backing from fundamentals so far. If that potential support holds, the action could move higher and come closer to the 1000-point distribution area between $4,500 and $5,500.
According to Mass Psychological Analysis, the Disbelief phase is still on, and the Hope phase should activate if the bitcoin price rises to $4,000.
On the other hand, Capitulation could be considered if values plunge below $3,000.
According to basic Formation Analysis, two figures would be synchronized in a very fragile balance. First, an Inverted Flag has been in the charts since the $6,000 support was broken. This means — after the current, temporary stabilization ends — values could keep heading down to the $1,800 support, where a lateral market is expected to stabilize the action again.
On the other hand, a Diamond structure could be in progress. If it confirms, $3,000 would be sustained as a psychological support to back the reversion chance while bullish consensus recovers.
Following Japanese Candlestick’s fairy images, offer’s Crows seem to be strong enough to defeat the Soldiers of demand if they attempt to approach the new 1000-point battlefield between $4,500 and $5,500.
From there, even without a favorable combination of technical indicators and fundamentals, a currently-forming Diamond Structure in a sideways movement will improve the chances of a reversion by cutting the bearish trend.
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]
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