Don’t be fooled by the recent recovery to $1000. With the bitcoin price wrapping up a big distribution area near the $1100 resistance level, the markets are getting ready to go down to $600.
Bitcoin Price Technical Analysis
Prices held in a big distribution area at the $1000 range, but it appears that this phase is ending. Therefore, quotes are getting ready to drop to $600 in an aggressive downward movement. The weak resistance at $900 should be easily broken during the decline.
After testing the main channel which drives prices since 2013 a pull up from 600 is expected to stabilize back up and down within a resistance at 850 and a rising support at 700.
According to indicators, volatility remains high, not allowing for prices to stay at the current levels for much longer.
A correction to the main rising support at $600 could be the next scenario following the decline. The same support level caused the second parabola-like pattern in January, which became prolonged during the Chinese New Year.
Following a similar path to the January parabola, we can expect an aggressive fall once the markets realize the $1100 resistance can’t be broken.
The bitcoin prices relatively weak strength can’t break the resistance enough to remain at $1100 in the short-run.
Many bearish signals appear in the Japanese Candlestick Analysis, but prices are still treading water at the high side with great sensitivity to the news.
If the news triggers a major decline, we could expect the bitcoin price to enter a lateral sideways market in the $600-$850 range, bobbing up and down for at least a month. Indicators only support sustainability followed by a hard fall in the nearby.
What do you think will happen to the bitcoin price? Let us know in the comments below.
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This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.