It has finally happened. The bitcoin price has broken a strong resistance to leave behind the bearish channel and begin moving upwards again.
Bitcoin Price Technical Analysis
Holding a lateral market, prices anticipated a strong reaction to the up side and have broken the descending resistance at the $8,000 USD level.
Now, at Gann Angle Theory´s light, all strategies would be rethought, considering the strength of the current lateral sideways market, taking into consideration current political factors and financial situations around the globe. Such changing factors could bring in many new investors, which would cancel the 5th Elliott´s Wave to $3,500 and end the downward movement to start a new upward cycle.
The $3,500 target could be canceled in the mid-term due to recent bullish activity. In such an event, the triangle pattern shown in the above chart would be pushed to the upside, and hold values above the descending resistance. This would of course trigger a new bull rally.
Fundamentals and news are solidifying bullish influence at the moment, with external factors like war and political rumors driving investors into Bitcoin. This contributes to bullish consensus and helps confirm several technical factors, which will sustain the bitcoin price for another week in preparation for a big boos to $14,000 and beyond.
New investors entered this market as the result of some asset protection strategy before recent world political factors, swapping to bitcoin from other financial or real estate positions and role playing like Soldiers following the fantasy of Japanese Candlestick Criterion.
The consequent reflection of technical signals are bringing many observers to action, who were previously waiting for lower objectives to be accomplished.
Now that quotes have crossed the descending resistance, a situation where the market sustains the current lateral market for another three days, the downward movement could turn into a strong bullish trend and following the fantasy of the same old criterion: the Soldiers will defeat the Crows.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
If you find Ramiro’s analyses interesting or helpful, you can find out more about how he comes to his conclusions by checking out his primer book, the Manual de Análisis Técnico Aplicado a los Mercados Bursátiles. The text covers the whole range of technical analysis concepts, from introductory to advanced and everything in between.
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