Good news, chronic bitcoin price watchers: it looks like the dip is finally over. BTC has consolidated just above $4,000, with bullish consensus building to push it even higher.
Bitcoin Price Technical Analysis
With the markets following the 5th phase of a major, upward-moving Elliot Wave, the bitcoin price could reach $5,500. If this happens, a major psychological barrier at $5,000 would be broken. With that barrier gone we may see a flag formation emerge, creating a sideways market until a long-term rally to $9,000.
According to Elliott Wave theory, the major 5th wave is growing upwards, bringing new zig-zag movements.
These zig-zag patterns create small profit-taking activity that does not drastically affect the price. At the same time, those patterns allow new investors to enter the market, building momentum for a coming rally.
While this activity unfolds, a sideways market may emerge as part of an “ABC” phase. Here we can find the first support level at $3,800, a well-established congestion area.
A flag formation broke upwards, sending the bitcoin price beyond the $5,000 resistance. Here, a short-term correction could occur before the bulls consolidate and continue pushing towards the long-term objective at $9,000.
A triangle figure has appeared in the chart with a technical objective at $5500. This indicator suggests that significant profit taking could occur at the $5500 level. From there, the bitcoin price may consolidate and initiate a new rally.
Additionally, negative coverage in the media may inform a large accumulation strategy, from which a major, price doubling rally could emerge upon the circulation of positive information.
Do you think big things are in store for the bitcoin price? Share your predictions in the comments below.
Images via Pixabay. Price charts courtesy of Bitkan
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