After recovering from a scary dip, the bitcoin price has shown strength in the last week, increasing the likelihood of a rally to $22,000. From there, bitcoin will continue rising, finding an objective between $50,000 and $100,000 before the end of January.
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Bitcoin Price Technical Analysis
After Fibonacci´s level rebound, the bitcoin price started gearing up for a big flag bullish pattern that did not depend on the strength of prevailing bullish consensus or fundamental data. From here, another rally will start, driving the price towards $40,000 – and possibly even higher according to Round Numbers Theory.
This upcoming rally appears to depend solely on technical data, led by mainstream financial institutions that have now started entering the cryptocurrency space in a significant capacity. With Wall Street money leading the charge, we could even see prices as high as $50,000.
According to mathematical indicators, a head and shoulders pattern has exited the charts, replaced by an overlapped triangle. This new pattern signals the start of a push to $22,000, after which a sideways market can be expected as an intermediate stage.
If this projection plays out, traders will take profit and re-enter the market, this time treating bitcoin as a reserve asset and holding – further contributing to its increase in value.
A lateral movement has sustained current prices, and has reached the Gann’s trigger angle to resume its growth towards $22,000 as a first technical objective.
After bitcoin reaches this price, a congestion zone will emerge before the markets continue to push higher. A classic double bottom in the charts serves to support this projection, suggesting higher technical objectives between a very wide range from $50,000 to $100,000 in early 2018.
What do you think will happen to the bitcoin price? Share your predictions 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.