The bitcoin price is beginning a reversal pattern to the $700 level, where a congestion area should reinforce quotes for another climb to $820.
Also read: Coinbase AMA: ‘ETC Was Replay Attacked on Coinbase’
Bitcoin Price Analysis: Get Ready for the Bull Run
Long-Term Analysis
Now at the $580 support level, prices are starting to form an upward reversal pattern, which will allow pull back to $700, extended to Fibonacci’s technical objective at $820.
The current trading box we are considering was built according to the ended rounded bottom first pattern with the 38 percent and 62 percent Fibonacci retracement theory – it seems to be working so far. The next stage could be an upward rally into the new technical cycle.
Mid-Term analysis
Now, after a plunge to the support at $580-$600, a new bullish consensus is expected to provide the concurrent elements that ensure a change in the current trend. Main support took place, and volume reflects intense buying activity at $580.
However, round numbers theory indicates that while big players are make their marketplace at this level, the average traders should wait for quotes to reach $600 before buying. Doing so will allow them to take advantage of the initial rebound to $700, which should lead into a new bull cycle to $820, where the box resistance is still waiting on the quotes.
Short-Term Analysis
Japanese Candlestick analysis indicates that the market has changed for good, and the quotes are going up to the intermediate congestion area at $700 on the way to $820, perhaps in a rally mode.
The oscillators left the oversold zone far after the bitcoin price plunged, and they could be recovering strength, crossing each other to reinforce the rebound momentum from $580-$600 to the $700 level. From there, the bitcoin price should to go to $820 as a new bull run ensues.
What do you think will happen to the bitcoin price? Will it go all the way to $820? Let us know in the comments below.
Cover image via Bitcoinist.net.