After a week of stability and gradual recovery, the bitcoin price continues trying to break that bearish channel and move to the bullish side. The currency will succeed in doing that… if positive news continues coming in.
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Bitcoin Price Technical Analysis
The bitcoin price has held a bearish trend since the beginning of 2018. However, after the markets reached a low of $5,900 USD, a sideways market emerged.
From there, a gradual recovery began to the current point, where the descending resistance meets prices at $11,000 to determine if quotes will break to the upside of Fibonacci’s 38 percent retracement numbers on the way to $18,000 — and cancel the plunge.
However, prices could also resume the downward movement to match the fifth Elliott wave target, near $3,500.
The ongoing bearish trend could be canceled and dismissed by an inverted head and shoulders formation if the bitcoin price confirms the pattern — overcoming the neckline at $12,000 to advance a bull market rise to $18,000, on the way to higher levels.
At this point, the strong resistance could work as a trigger signal if it breaks to the up side. However, if prices and bullish consensus can’t make it, all bearish targets will activate — and the first support level remains at $9,000.
Even Japanese Candlestick Analysis shows bullish signals, with February reflecting more bullish days than bearish ones, and quotes could overcome the $12,000 resistance to leave the bearish channel, and sustain the ongoing lateral sideways movement.
This emerging trend could move the action back to the lateral range broken on January, and recover for another chance at a price rise, as long as no external forces bring another panic selloff like we saw in late 2017 when the price hit $20,000.
Mathematical indicators seem to be exhausted, showing another bull rally from this point. Therefore, the current price level depends only on news.
Do you agree with this analysis? Why or why not? Let us know in the comments.
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This price report is meant for informational purposes only, and does not constitute financial advice. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin, or any other digital asset.