Sunday, December 4, 2022

Bitcoin Price Zig-Zagging, But We Still Predict a Rally to $5000

Bitcoin Price Zig-Zagging, But We Still Predict a Rally to $5000

The Bitcoin price has been dancing around the $4,000 USD level for a couple of weeks now. While there’s still a chance it could drop and test that $3,500 resistance level, signs still point to a rally that would take it much higher. Is $5,000 BTC possible?

Also read: More Crypto-Hype: Excuse Me, Do You Take Russian Whoppercoin Here?

Bitcoin Price Technical Analysis

Long-Term Analysis

Bitcoin Price Chart 27 Aug 2017 Long

According to Elliott Wave Theory, bitcoin is immersed in and complicating into a lateral zig zag activity, which recognizes a selling resistance at $4,500. Prices could again test the first support back at $3,500. It’s now in a flag pattern that, if it confirms and breaks to the up side as expected, should launch another fast up-rally to the new objective at $5,000.

Mid-Term Analysis

Bitcoin Price Chart 27 Aug 2017 Mid

We’re overlapping different theories here, because prices are trading the current level for the first time. A briefly sideways market could drive prices to test $3,500 again to get into the path of next Gann Angles Theory, and to accomplish the fourth Elliott’s Wave before starting the fifth phase from $3,500 to $5,000.

Indicators reflect a wide trading area, with a bouncing zone below $3,800 and a strong selling pressure near $4,500.

Short-Term Analysis

Bitcoin Price Chart 27 Aug 2017 short

The first support line can be analyzed at $3,800, but due to Rounded Numbers Theory $3,500 could be considered the real bouncing level.

Japanese Candlestick analysis reflects a congestion area between both levels. This is similar to the way it happened a thousand and a half points below in June and July 2017, during the second phase of Elliot Wave Theory and before the rise to the present level. We could expect to see the same pattern again, but in a shorter time period due to the characteristics of the fourth phase of the same criteria.

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

Image via Jon Southurst. Price charts courtesy of BitKan.

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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