Sunday, May 29, 2022

Block Size War Continues to Dampen Bitcoin Price, But Relief May Be Over the Horizon

Block Size War Continues to Dampen Bitcoin Price, But Relief May Be Over the Horizon

Although it faced yet another delay, the bitcoin price is slowly heading downwards, performing long-predicted bearish patterns. However, key analysis at the short-term level reveals hope for renewed bullish sentiment in the extended long-term. 

Also read: Australia Will Be Cashless by 2020 Thanks to New Digital Payments Network

Bitcoin Price Technical Analysis

Long-Term Analysis

bitcoin price technical analysis

According to Elliott Wave Theory, quotes should attempt to bounce upwards to the former support at $1100. From there, a “B phase” will occur, testing the last support at $850. If that support breaks, the bitcoin price will likely stabilize somewhere around $600.

Other bearish patterns seem to be active, such as a big head-and-shoulders formation that ended the bubble to allow the current downward movement. If this pattern tests the main support at $600 and fails to break it, the price will start another upward movement and return to the $850 level.

Mid-Term Analysis

bitcoin price technical analysis

According to indicators, the bitcoin price can’t hold at $850 for long. However, $850 can be analyzed as an upper level support and resistance in the event of a bounce-back from $600.

In anticipation of a possible plunge, a bear flag formation has emerged. With a technical objective at $700, the completion of that formation could act as a trigger for the projected drop to $600.

Short-Term Analysis

bitcoin price technical analysis

Currently, a theoretical support exists at $850. However, those supports are weak and depend on fluid volume and fundamental factors.

At the technical level, the short-term trading channel remains bearish with an $800 support level. $600 looks like the lower bound of the short-term trading channel. If reached, that $600 threshold will trigger a rebound to $850, solidifying overall bullish positions and bringing in new players from the sidelines who will ultimately push the price higher.

What do you think will happen to the bitcoin price? Let us know 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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