The bitcoin price experienced an admittedly scary drop under $6000 this past week. But that hasn’t actually changed any of the prevailing technical indicators. After recovering from the slight dip, the price seems to have entered the forecasted sideways market under $7000 that will eventually trigger the rally to $12,000 in early 2018.
Bitcoin Price Technical Analysis
After an extended upward movement powered by global news—and vastly accelerated last Wednesday after the 2X fork cancellation—the bitcoin price has left behind Elliot’s Wave Theory. Now, the market has entered the last major ABC zig-zag phase before entering the next major movement.
If this zig-zag pattern crosses the bear angle without causing bitcoin to plunge, the trend will have arrived at the trigger-point of an overlapped Gann’s theory. From there, a wide trading range will open, allowing the bitcoin price to surge towards $12,000 during the first month of 2018.
Mathematical indicators reflect increasing volatility, which will allow a wide and contradictory trading range between $7000 and $5500 depending on fundamental data and erratic profit taking from new investors.
Entrenched traders, however, will continue marking their positions and further reinforcing the $5500 support. From there, bullish consensus will continue building, possibly pushing the bitcoin price over $12,000.
According to Fibonacci Numbers, short-term support levels stand at $5000 and $5500 into the same ascending trendline.
If that trendline holds across the bear angle without collapsing, then a major bull rally will become possible. Beyond the $12,000 objective, this rally could activate several more high-goal objectives that we have not yet seen.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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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.