Not much has changed in the crypto markets. The bitcoin price continues moving sideways in a weak lateral channel, vulnerable to a crash brought on by bearish pressure.
Bitcoin Price Technical Analysis
Remaining in the same sideways movement since December 2018, the bitcoin price has defined a new sustaining level based on nothing but Round Numbers Theory. Depending on external factors, current market weakness exposes the bitcoin price to a plunging risk, pointing at $2,500 USD as a target where an upward bounce could be expected.
Mass Psychology Analysis has collected several facts that confirm a combination of the disinterest and capitulation phases, both favoring a bearish swing to $2,500 before a recovery that overcomes the distribution zone defined between $4,000 and $4,500.
The market recognizes $3,100 as a sustaining level and $4,100 as a resistance, from which a distribution zone is settled. The current up and down activity seems to be wrapped around an average middle price axis at $3,700, working as a balancing point between a strong bearish pressure and weak, erratic demand.
Distribution zone characteristics involve the manipulation of fundamentals until an unexpected event precipitates further action.
After the dead cat bounce ends near $4,100, Bollinger Bands and Japanese Candlestick analysis, reflect that prices have again failed to overcome the resistance and could fall back to test $3,700 support. If that fall back manages to plunge below $3,600, another 1000 point drop should accomplish the bearish target and end the current cycle.
Demand’s Soldiers are no longer on the battlefield, while Offer´s Crows dominate the $4,000 level and hold the ability to transfer selling pressure to the current level. If that occurs, the bitcoin price will drop to the real support near $2,000.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
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