Bitcoin Price Going Up as Markets Rebound From Holiday Slump
January 14, 2020 by Ramiro Burgos
The bitcoin price is showing some strength after a weak holiday season. Although for the first time in a few years the bottom was higher than previous years. Now we’re heading into the new year we’re seeing the markets rise into the $8,000 to $12k range as predicted. Let’s look at the data.
Also Read: Meager Christmas Gifts for Bitcoin Price in 2019 – How About the New Year
Bitcoin Price Technical Analysis
Long-Term Analysis
Every kind of signal appeared in the chart, and many different external factors are stimulating the general will, so prices finally turned from going sideways at the same $7,000 level to try to overcome a strong distribution area analyzed between $8,000 and $12,000.
According to Mass Psychological Analysis, a Hope phase is still active but could change into Optimism if $8,000 becomes a new axis level to allow values to go lateral until this new scenario gains confidence from different players.
If quotes drop down back to $7,000 and keep going lateral there, walking away from the rounded bottom curve, they could lose strength and fall to the next support calculated near $6,000.
Mid-Term Analysis
A bearish channel with plenty of volatility and technical signals keeps reflecting a delayed bullish scenario, now confirmed for the moment. Quotes could challenge the resistance evaluated at $8,000, but many mathematical indicators have covered more than half the way to their top limits during the lateral movement, and quotes can’t get enough stamina to go higher, so quotes could stay at the current level until technical indicators swing down to their bottom and come back to prices across the distribution area to drive the action near $10,000.
Every rise attempt would face a hard distribution activity which harms the trend’s strength, favoring a bearish correction or a lateral market if Bullish Consensus increases from News and external factors.
Short-Term Analysis
A second Fibonacci Fan Line was activated and prices finally reacted. The third one is about to be reached by quotes now through a little Flag formation which, if it confirms, would take prices near $10,000.
Japanese Candlestick fairy examples are still favoring demand soldiers to clash with the Crows by crossing the Bollinger Bands’ center line at $7,000, and the top range at $8,000 according the same criteria, which coincides with the lower bound of the imaginary battlefield settled between $8,000 and $12,000, controlled by distributors & sellers represented by crows. If this action consolidates, demand could prevail while a lateral market waits on mathematical indicators’ synchronicity, and an upward movement would lead the activity to higher levels.
What do you think will happen to the bitcoin price? Share your predictions in the comments below.
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 protected]
Images via Pixabay, Ramiro Burgos
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.
