A Surprise Rally? Bitcoin Price May Reach $30,000 Soon
After another round of sideways activity, it looks like the bitcoin price could see the end of the current lateral market soon. In fact, we may be in for a surprise adjustment that sends the price higher.
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Bitcoin Price Technical Analysis
Following Elliott Wave theory, prices could end a big second bearish wave due to a Head and Shoulders formation that ends a Fibonacci lateral market. This creates several overlapping trends to consider.
The direct observation of market behavior indicates that it is repeating the same pattern as the one from July to December 2017. The price transition started near $1,000 USD in 2017 and stabilized at $6,000 as a new bottom in 2018. During the in-between period, the bitcoin price had a parabolic rise to $20,000 before falling back to current levels under Fibonacci rules.
Using the same reasoning, the occurrence of a new stabilizing level between $18,000 and $25,000 would lead to another parabolic movement to higher levels. From there, the price would follow Elliott Wave Theory and fall back, while remaining above the current historical peak level.
A second triangle formation was defined to the up side before correcting, and this time mathematical indicators confirmed signals for a bullish trend. Prices could surprisingly shift to higher levels, transferring the last triangle’s height, which would contribute to driving the action to a big upward rally.
If volatility increases, the current support area between $4,500 and $6,000 would become the new bottom for the next bullish cycle towards $30,000 or higher. If prices cross below the support area and drop below $4,500, the bitcoin price could plunge to zero.
After prices corrected from $8,500 to the Fibonacci fan Lines intermediate support area, Japanese Candlestick fantasy stages reflected a Morning Star signal, which usually appears at the beginning of an upward movement.
If this signal confirms, a resistance zone can be expected near $8,000, and the lateral market will remain active until values overcome that level. Bullish soldiers would reinforce demand from the current bitcoin price, and if sleeping soldiers wake up and join the battle, the lateral sideways movement would be over.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
If you find Ramiro’s analyses interesting or helpful, you can find out more about how he comes to his conclusions by checking out his primer book, the Manual de Análisis Técnico Aplicado a los Mercados Bursátiles. The text covers the whole range of technical analysis concepts, from introductory to advanced and everything in between. To order, send an email to [email protected]
Image via Aleksandar Jakovljevic