The bitcoin price is bouncing around the $3,500 mark — but don’t worry, it’s still heading into a rally to $5,000. And where it goes from there is still anyone’s guess.
Bitcoin Price Technical Analysis
According to Elliott Wave Theory, after accomplishing the third phase at $4,500 the bitcoin price began a zig-zag pattern resulting in a fall back the first support at $3,500.
From there, a bounce is expected to start another rally to the new objective at $5,000 within the same bubble. Successive flags also overlap the previously-mentioned pattern, getting support from a better-known figure, clouded by the complexity of such a subjective criteria for analysis.
According to indicators, the bitcoin price could slip down to a descending lateral market in the mid-term, cushioned by the entrance of new, enthusiastic traders motivated by profit taking.
This likely investor turnover could start powering the fifth Elliot Wave Theory phase from $3,500 to $5,000. Meanwhile, volatility remains high and trading volume continues increasing as the bitcoin markets globalize.
The characteristics of the current rally, even during this partial correction, suggest an abundance of false signals and contradictory data. This usually happens in emerging markets before they become fully-globalized.
First support line in the short-term can be analyzed at $3,800 but, due to Rounded Numbers Theory, $3,500 could be considered the real bouncing level. At any rate, Japanese Candlestick Analysis reflects a congestion area between both levels, so traders can expect some sideways movement regardless.
What do you think will happen to the bitcoin price? Share your thoughts and predictions in the comments below.
Image via EyeOnFDA. Bitcoin 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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