Bitcoin Price Headed Back to $2,000 After Failed Recovery Attempt
Hope does not seem to be in the bitcoin price charts this week. After failing to complete a reversal formation to the upside, technical indicators now show the price heading to $2,000 USD.
Bitcoin Price Technical Analysis
The bitcoin price market remains immersed in a fragile psychological scenario, backed by nothing but wishful thinking and an imaginary support level at $3,000.
Since the upward swing we saw in the last week failed to turn into a strong recovery, we can consider it a dead cat bounce. Therefore, we can expect the bitcoin price to break the false support at $3,000 and head down to the pre-bubble support below $2,000.
On the other hand, technical indicators still show a trigger level for a recovery movement at $4,300. However, resistance at that level is getting stronger, and it doesn’t look like the bulls will be able to overcome it any time soon.
The current lateral market has held too long and failed to confirm an Inverted Head and Shoulders formation.
Thus, with conflicting fundamentals, a drop below $3,500 will extend the current Disbelief Mass Psychology Analysis phase to drive traders into a Capitulation phase rather than Hope. From there, we can expect the bitcoin price to fall even more — going as low as $1,800.
Japanese Candlestick fairy images, combined with modern Elliott Wave Theory, reflect that offer’s Crows descended from the battlefield between $4,500 and $5,500 to transfer the pressure to the $4,000 level.
Yes, even the Crows lost their strength by dividing the selling pressure. However, Soldiers of demand missed the opportunity to act on the vulnerable crows, allowing them to receive reinforcements and win the battle once again.
After the latest defeat, the Soldiers will retreat to lower levels and organize a new battle plan, which will likely result in a fight for control of the pre-bubble support at $2,000.
What do you think will happen to the bitcoin price? Share your thoughts 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 Pixabay
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.