Bitcoin Price Continues Trending Sideways as Crash Approaches
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.
Also read: French Finance Head: Privacy Cryptos Should Be Banned
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts
Bitcoin Price Technical Analysis
Long-Term 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.
Mid-Term Analysis
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.
Short-Term Analysis
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.
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 Marcy Pro
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.
