Friday, February 3, 2023

Bitcoin Price Continues Looking Upward as Charts Remain Hopeful

Bitcoin Price Continues Looking Upward as Charts Remain Hopeful

While the bitcoin price continues to maintain a sideways pattern, bullish consensus continues to grow and points to an upcoming rally. If successful, the bulls could push the price as high as $30,000 USD.

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Bitcoin Price Technical Analysis

Long-Term Analysis

bitcoin price technical analysis

After eleven days of sideways activity at Fibonacci retracement levels, major formations changed their appearances, while bearish patterns weakened enough to rule out a break down to zero.

This sustained lateral market has given the bulls a chance at a breakout rally to $30,000 if the bitcoin price can reach $14,000 in a single rally. Even if the initial rally doesn’t make it that high, bitcoin can still cross the descending resistance and reach $14,000 if the sideways activity holds for another week after the initial rally breaks.

Alternatively, if in any case prices head down, a weak support can be expected at $5,000 on the way to zero.

Mid-Term Analysis

bitcoin price technical analysis

According to Elliott Wave Theory, an “ABC” retracement movement configured a “big II” wave from $20,000 to $10,000. Now, a sub-bullish wave 1 followed by a sub-2 correcting one inside the current lateral sideways movement could build a “big III” wave upwards, from current prices to $30,000.

Elliott based his theory on Fibonacci´s series, so many followers of this criterion should analyze a coming sub-wave 3 to $20,000, then a sub-4 retracement pattern back to $16,000. Finally, a sub-wave 5 to double prices near $30,000 would finish the “big III,” where all other developing theories coincide in a global bullish consensus.

However, this situation can only play out this perfectly if self-fulfilling prophecies powered by newbie traders following veteran activity come true.

Short-Term Analysis

bitcoin price technical analysis

According to Japanese Candlestick analysis, a new “Morning Star” seems to confirm the bullish trend, in which case prices should reach the $14,000 resistance and break to the up side.

This milestone would enable big objectives from many other technical theories, triggering a domino effect that could accelerate the rally to at least land quotes over Fibonacci’s retracement, where the bitcoin price would pull back at $17,000.

Other ancient signals have proven effective in the past, reinforcing the chance of another successful break to the up side. If moving averages cross themselves, the signal would reinforce positive rumors, opinions, institutional statements and technological innovations that currently do not affect the market due to fear and general confusion.

What do you think will happen to the bitcoin price? Share your predictions in the comments below. 

Image via 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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