Friday, December 2, 2022

Get Ready for the Panic: Bitcoin Price May Drop to $5000 Soon

Get Ready for the Panic: Bitcoin Price May Drop to $5000 Soon

It looks like we may soon hit the first bump on the rough road to a $9000 bitcoin price. Although the market has returned to $6000 after a small dip, indicators suggest we may go all the way down to $5000 soon.

Also read: Bitcoin Cash Is Surging Again, But Why?

Bitcoin Price Technical Analysis

Long-Term Analysis

bitcoin price technical analysis

The bitcoin price has consolidated at the resistance around $6500, forming a sideways, zig-zag pattern at $6000 that confirms Elliot Wave Theory.

During this sideways phase, the bulls lay in wait for any hint of positive information that could back the prevailing bullish consensus. Once that information emerges, the rally will resume and the price will head towards $9000 once more.

In the meantime, contradictory opinions on price trajectory, combined with the possibility of negative news, may increase volatility. In the worst-case scenario, that volatility could push the price all the way down to the $5000 support.

Mid-Term Analysis

bitcoin price technical analysis

Following Gann´s Angles criteria, a third sideways pattern has emerged, which should stabilize at $5500 as the charts enter the center angle of this developing theory.

According to other indicators, the market could slide lower into a zig-zag pattern if a head and shoulders pattern forms. This movement would send the bitcoin price to the lower-bound support at $5000. From there, a wide bounce would be expected, forming a flag pattern as the price moves upwards.

Short-Term Analysis

bitcoin price technical analysis

A short-term head and shoulders formation has started forming in the chart. If the second shoulder of this emerging pattern forms, the bears will have an opportunity to push the price down to $5000.

Japanese Candlestick analysis reflects defensive trading activity occurring in the short-term. If the moving averages cross themselves to the downside as a result of this defensive action, the bitcoin price prices could weaken while remaining inside the main uptrend, causing some zig-zag movements.

What do you think will happen to the bitcoin price? Share your predictions in the comments section. 

Image via Pixabay

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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