Wednesday, February 8, 2023

Bitcoin Price Preparing for Big Rally to $1200 Following Chinese New Year

Bitcoin Price Preparing for Big Rally to $1200 Following Chinese New Year

As support at the $900 level builds, bitcoin price markets seem to have confirmed technical projections of a movement to $1200 before a sharp decline that tests current support.

Also read: Technical Analysis: The Bitcoin Price Roller Coaster to $1000 and Beyond

Bitcoin Price Technical Analysis: Expect Big Rally After Chinese New Year

Long-Term Analysis

bitcoin price technical analysis

With a slowdown in trading due to the long Chinese holiday, bitcoin prices have been performing in a low-volume, lateral sideways market.

This activity—lending support to the $900 levels—has strengthened the bullish consensus. As a result, technical indicators point to $1200 as a new distribution scenario. From there, a hard correction will send the bitcoin price back to the $900s, which will be tested as a weak support level on the way down to $700.

In a return-to-$700 scenario, the markets will recognize and prioritize old trend lines over high volatility.

Mid-Term Analysis

bitcoin price technical analysis

According to indicators, volatility is high enough to support bullish speculation that could take place in the ongoing parabola pattern, delayed due to the 10-day Chinese New Year.

Once this pattern resumes, the bitcoin price should shoot upwards into the $1200 area. If this scenario plays out, markets will trend sideways for a few days before prices fall back to $850-$900. During the downward phase of this parabola pattern, the bitcoin price could go as low as $700 before the markets consolidate and return to the $900s as a strong axis.

Short-Term Analysis

bitcoin price technical analysis

The current bullish movement is strong enough to allow the bitcoin price to reach $1100, from where a big distribution area is expected. According to Fibonacci retracement theory, quotes could recover to this technical goal depending on the volume reentry. Volume must continue to rise, and right now indicators are too erratic to enforce such a continuous rise.

Therefore, we will likely see a kind of roller coaster, up-and-down pattern to $1100. From there, if the larger, parabolic pattern will end at $700 in an aggressive downward correction. Furthermore, if volume lacks fluidity for a second week, Gann Angles Theory will bring the price to successive short-term goals at $1050 and $1200.

What do you think will happen to the bitcoin price? Let us know in the comments below.

Cover image courtesy of 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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