We were all excited when the bitcoin price broke $4000. But what if we told you the markets were on track to hit $5000 soon?
Bitcoin Price Technical Analysis
The bitcoin price hit last week’s technical goal, which propelled the markets into a big upward movement.
A bubble could be starting, evidenced by the abundant volatility emerging at the first support of $3500. If that support does not hold against the volatility, the next one should emerge at $3000.
In April, the price rallied up across the wide part of a rising channel that opened in 2014, and recognized resistance at $3000. Now, looking at the Elliot Wave’s 3rd phase, that same zig-zag pattern projects a new long-term objective near $5000.
A zig-zag movement started at 3500 could end the current cycle if prices reach $5000.
According to indicators, a bubble could be emerging, but new investors from all around the world bring a bigger market and add support to the new highs, essentially, forcing a new analysis every week. Successive resistance levels became supports when prices broke them, providing bouncing zones and attracting new, enthusiastic traders.
Indicators reflect high volatility while a new rising channel between $3600 and $4500 drives up the trading action in the short term.
This activity is backed by the mainstream media coverage of the ongoing rally, attracting interest that could translate into increased buying. If that happens, present technical patterns could speed up.
However, new traders will have to look out for false signals and contradictory data, a common problem in new markets on the verge of becoming globalized.
What do you think will happen to the bitcoin price? Share your thoughts in the comments below.
Image via Pixabay. Price charts courtesy of BitKan.
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.
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