Bitcoin Price In a High Volatility Zig-zag Action, Possibly Sets a Three Month Lateral Market in the $4500 – $6500 Range
The COVID-19 virus has sent most of the world into lock-down causing markets of all types to fall and bounce with every new news report.
The bitcoin price and cryptocurrencies have also felt this pressure as we have shown in the past weeks.So much uncertainty of how things will culminate has left the world reeling. Keep in mind the values could do something unexpected from just a sliver of news because of market sensitivity. Here are how things look right now for Bitcoin.
After the trend dropped the prices to $4000 support, a new congestion area was settled between $4000 and $6500. Quotes could cover the range up and down boosted by volatility for three months before the break out of it to the upside. Thus following the Mass Psychology´s phases and development theories. On the other hand, a distribution area is increasing its influence to drive the same breakout down to the next support near $3000 or below. With values and technical indicators finally synchronized, external factors and news would bring grounds to a natural integration of Bitcoin to global portfolios as an accepted asset. So while the bullish mood gets back, values would go lateral until halving ends in May.
Prices could balance with offer and demand forces starting a new side-ways movement. A partial reversal movement to $6500 and beyond was expected as a kind of confirmation to activate the current new $2500 basis points scenario. Yet after that happened the downward trend would take place to $4000 during the zig-zag action. External political factors and News plays a principal role to favor of the main uptrend after halving which could include Bitcoin as part of the institutional financial tools to consider. Mathematical indicators work as a sustaining net to contextualize with traditional formations like Inverted Flags and measure every target.
Japanese Candlestick fairy Analysis confirms that crows expelled the demand´ soldiers from the last fairy battlefield, directly to $4000. Next following Fibonacci Fan lines, stages could be in an intermediate sustaining area with the rise of plenty of volatility. After the bitcoin halving, Soldiers should reorder themselves to clash against the crows. They will have a chance to prevail and march upwards across the new imaginary battlefield. For the moment they are barely able to defend $4000 levels as support. This is forcing the crows to forget their distribution ideas near $10000. Now they enter a new 3-month zero-sum game, between $4000 and $6500.
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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