Bitcoin Price Going Up as Markets Rebound From Holiday Slump
The bitcoin price is showing some strength after a weak holiday season.
Bitcoin Price Technical Analysis
Every kind of signal appeared in the chart, and many different external factors are stimulating the general will, so prices finally turned from going sideways at the same $7,000 level to try to overcome a strong distribution area analyzed between $8,000 and $12,000. According to Mass Psychological Analysis, a Hope phase is still active but could change into Optimism if $8,000 becomes a new axis level to allow values to go lateral until this new scenario gains confidence from different players. If quotes drop down back to $7,000 and keep going lateral there, walking away from the rounded bottom curve, they could lose strength and fall to the next support calculated near $6,000.
A bearish channel with plenty of volatility and technical signals keeps reflecting a delayed bullish scenario, now confirmed for the moment. Quotes could challenge the resistance evaluated at $8,000, but many mathematical indicators have covered more than half the way to their top limits during the lateral movement, and quotes can’t get enough stamina to go higher, so quotes could stay at the current level until technical indicators swing down to their bottom and come back to prices across the distribution area to drive the action near $10,000. Every rise attempt would face a hard distribution activity which harms the trend’s strength, favoring a bearish correction or a lateral market if Bullish Consensus increases from News and external factors.
A second Fibonacci Fan Line was activated and prices finally reacted. The third one is about to be reached by quotes now through a little Flag formation which, if it confirms, would take prices near $10,000. Japanese Candlestick fairy examples are still favoring demand soldiers to clash with the Crows by crossing the Bollinger Bands’ center line at $7,000, and the top range at $8,000 according the same criteria, which coincides with the lower bound of the imaginary battlefield settled between $8,000 and $12,000, controlled by distributors & sellers represented by crows. If this action consolidates, demand could prevail while a lateral market waits on mathematical indicators’ synchronicity, and an upward movement would lead the activity to higher levels.
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.
Article Produced By
Ramiro is a technical analyst specializing in stocks, futures, options and Bitcoin. He provides weekly analysis on the bitcoin price for Bitsonline. Based in Buenos Aires, Argentina, Ramiro has worked in the financial industry since 1987, with his technical analyses appearing in local and global news publications.
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