Don’t be alarmed by the current slump in the bitcoin price. In fact, there is still cause for optimism. The market is going through a reversal pattern to the $700 level, where a congestion area should reinforce quotes for another climb to $820, keeping us right on track to hit the projections advanced last week.
Bitcoin Price Analysis: Bulls Still in Control
After testing the lowest support at the $580-$600 level, prices should enter an upward reversal pattern soon, which will allow an initial pull back to $700, extended to Fibonacci´s technical objective at $820.
The next stage could be an upward rally into the new technical cycle, which may be delayed until big players accomplish their marketplace. An ascending support ensures the breakout into a new bull cycle.
Now, while quotes are testing the support level, a new bullish consensus is providing the concurrent elements that should start a consolidated new cycle to $700, and further to $820.
Mathematical indicators are showing buy signals, and current volume is providing the market with a chance to start a new bull trend from here to $1800, with several zig zag situations and profit taking areas.
Japanese candlestick analysis indicates that the market can sustain itself long enough to allow the quotes to rise into the intermediate congestion area at $700 on the way to $820, perhaps in a rally mode.
The first resistance level could be calculated at $700 because of the last month congestion which had sent prices to the current figures from where the new bull cycle is starting.
What do you think will happen to the bitcoin price? Should we be worried about the weekend slump? Are the bulls still in control? Let us know in the comments below!
Cover image courtesy of Bitcoinist.net.