Bitcoin Price: Recent Drop a Brief Pause in Larger Rally to $920
Bitcoin price volatility has increased, building building intermediate price levels as support references for the next rally. So, get ready for another ride to the moon, because the bulls are preparing for another stampede.
Bitcoin Price Technical Analysis: $920 Rally a Likelihood
After confirming a strong bullish consensus, prices are building intermediate levels as support references for when the next rise to $820 takes place.
This further upward movement, if confirmed should increase volatility and create confusion, leading to a lot of profit taking action and false signals that could produce a lateral sideways market.
Using last June’s bullish movement as a reference, similar bullish signs allow the chance for another climb into an euphoric bubble, which should bitcoin price double quotes again to end this year over $1500.
If this scenario comes to fruition, prices will first take the action higher in another fast rally. Then, the markets will level out in a lateral sideways market at $820 before reaching the next trigger zone at $900.
Trading activity could increase with new intermediate support and resistance levels, while prices perform a synchronization process recovering their lag against indicators when arriving at the $820 level.
Japanese Candlesticks Analysis reflects the chance of another upward movement, while all theoretical thinking gets over to start the direct observation of price action and their indicators activity.
Staff opinion: Last week, we predicted that the bitcoin price would level out in the $700 range for some time, with further bullish pushes kept in check by profit taking at points above the psychological barrier of $700. This prediction proved to be accurate. The bitcoin price rose well above $700 for a few days, reaching highs of $740. However, a selloff quickly ensued, and the price fell to a low of $685 before returning to the $700 support. Taking this activity into consideration, we believe the $700 price point will continue to persist, with the next significant movement in the markets aligning with the present technical analysis.
What do you think will happen to the bitcoin price? Let us know in the comments below.
Cover image courtesy of Pixabay.
This technical analysis is meant for informational purposes only. Bitcoinist is not responsible for any gains or losses incurred while trading bitcoin.