How strong are your hands, hodlers? The bitcoin price expects a bull market but only after going even deeper down, to end the current correction. It’s a situation that could test the mettle of most traders, but there are still several reasons to be optimistic.
Bitcoin Price Technical Analysis
Long Term Analysis
Bitcoin prices could end the Big II current correction soon, going down the fifth wave to the technical supports near $3,500 — following the same Elliot´s Theory it recognized last December 2017 during the euphoric rise to $20,000.
Now while the “panic” psychological phase takes place to end the bearish cycle, new objectives over $20,000 have potential to be accomplished, through a strong upward Big III wave reinforced by Fibonacci´s retracement numbers and refreshed mathematical indicators, news, and political factors.
Mid Term Analysis
The bearish trend allows another potential down break to $9,000, $5,000 and even $3,500 where the technical target would end the fall.
According to Gann Angles Theory the bearish trend is driving down the prices, and reversal chances are too far to be reached by price trends. Below $9,000, the next support can be expected near $6,000 — and if prices break it, $3,500 should be the last target.
From there, the ABC pullback would start the recovery, gearing a new cycle. If an external factor, for instance the media or political world, sparks a rise and prices overcome $12,000 again, an inverted head and shoulders could dash all the bearish analysis to advance the expected bull market.
Short Term Analysis
After a Gravestone Signal from Japanese Candlestick Analysis ended the fouth pullback a week ago, a second Diamond formation could be taking place in the chart.
If it confirms, prices would go down to the bottom of the theoretical development — matching the same target as the Big II corrective wave and the fifth sub-movement which would end the bearish downward near $3,500.
Watching MACD indicators, the same signal that appeared in December 2017 (when prices went lower and bounced) seems to be going on today. If no external success avoids the plunge and the pattern repeats, the same bounce could happen and halt the bearish trend for good.
What do you think of this analysis? Let us know in the comments.
Images via BitKan, Pixabay
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.
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