It looks like the bitcoin price is getting more support than expected from the bulls. Currently straddled at $5,500 USD, a new lateral market has been established, with the possibility of another bullish breakout.
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The Disbelief Phase from Mass Psychological Analysis currently maintains bitcoin prices in the same lateral market range started in December 2018. This time, however, the lateral market is bumping up against the top edge of the sideways channel. If prices could fully overcome $5,500, most analysts would transfer the same width of the lateral channel to the upper stage, enabling new bullish targets from $6,500 to $8,000
On the other hand, basic support and resistance analysis still keeps the possible $2,800 floor active, from where uncertainty would tune the bullish consensus to start a definite upward trend with verifiable technical support. The wait-and-see trading posture still seems to dominate all market participants and will continue to do so until the market determines if average basic signs are reliable.
So far, 2019 seems to be running by Fibonacci Criteria, so we are seriously considering the theory’s retracement numbers, which point to $4,750 as bouncing area. These criteria also highlight $2,800 as an active bearish target.
However, if the current sideways trend continues running, all indicators will produce new signals for consideration. If that happens, the current bitcoin price level may become strong enough to constitute a reliable floor.
A new distribution area between $5,500 and $4,800 has emerged and could be adjusted to a $5,000 to $4,750 range. Following Japanese Candlestick fairy examples, Offer´s Crows control the current distribution area, while Demand´s Soldiers wait at a correction level near $4,750 to re-enter the battlefield with a chance at victory.
The market is still confused by contradictory media reports and political factors. Prices jumped back into the Bollinger Bands area, pointing to a correction level between $5m000 and $4,500. However, that theoretical defense could be razed to 2800 if average investors maintain their wait-and-see postures until a bullish trend begins from a lower point.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
If you find Ramiro’s analyses interesting or helpful, you can find out more about how he comes to his conclusions by checking out his primer book, the Manual de Análisis Técnico Aplicado a los Mercados Bursátiles. The text covers the whole range of technical analysis concepts, from introductory to advanced and everything in between. To order, send an email to email@example.com
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