Wednesday, May 25, 2022

Don’t Be Fooled by the Recovery: Bitcoin Price Still Headed for $600

Don’t Be Fooled by the Recovery: Bitcoin Price Still Headed for $600

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.

Also read: Bitcoin Price Taking the Plunge: Indicators Projecting a Fall to $600

Bitcoin Price Technical Analysis

Long-Term Analysis

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.

Mid-Term Analysis

bitcoin price technical analysis

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.

Short-Term Analysis

bitcoin price technical analysis

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.

Cover image courtesy of Shutterstock.

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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