Technical Analysis: Bitcoin Price to Retract Before Big Rally
Confusing information could lead the bitcoin price to test its $600 support during a congestion area for another month before returning to $700. After which, the price is set to rise even further to the resistance at $820.
Bitcoin Price Technical Analysis
During the current congestion area, quotes are still in a wide trading box, and even in the next step they would test the lowest borders at $600 or $580. The price should stay in that range, zig-zagging in a lateral movement for another month, returning first to $700, then hitting another congestion area before rising 820.
Rounded bottom formation is over, and a big flag could be taking place with a large pole to $820, but first we are expecting to see some bearish trading and weak hands in panic, probably framed in bad news or political factors.
Successive rising supports are about to be broken to the bearish side in the same congestion area that dominates prices at present.
However, those trading opportunities should be activated on purpose to improve accumulation activities, focusing a wide 100-point trading range to $700, where another congestion level should confirm a further climbing step to 820.
Mathematical indicators are reflecting a weakness stage, and volume doesn´t back any rise at the moment, so bear prices could be seen mixed with confused information.
Prices are forecast to go sideways in a sustained pattern around $600, meaning that recent lows like $580 could return before a rebound to successive up-trend lines. Japanese candlestick analysis reflects that the next zig-zag movement could drive prices below the present level for a while, waiting for negative news and fundamentals to promote the selloff before the upward movement returns next month.
What do you think will happen to the bitcoin price? Let us know in the comments below!
Featured image courtesy of Elite Academy.