Many people (including us) didn’t expect it to happen, but the bitcoin price has surpassed the upper channel limit of $5,500 USD. Thus, there is a real possibility that we could be in a new bull cycle with real, mathematical support. Now, the challenge is to sustain the newly-established level near $6,000.
Also read: Bitcoin Price Needs More Strength, But Where Will it Come From?
Bitcoin Price Technical Analysis
$6,000 seems to have been a determining market level since November 2017, when the big upward movement to the all-time high record started from here to $19,000. On the other hand, while in November 2018 all the attention was set on repeating that former rise, values dropped to $3,000 in a single week to start another record five-month lateral market.
External factors and news backs the current bullish development, though, and Mass Psychology Analysis reflect that the Disbelief Phase is now giving way to Hope.
The wait-and-see attitude among market participants seems to be gradually giving way to bullish market action. The current sideways movement keeps running on, and all indicators are showing new signals of strength to consider the former upper bound at $5,500 as a new support level.
New resistance can be calculated at $6,000, forging there a trigger target to activate higher levels. However, if the bitcoin price falls out of this channel by breaking down the new support, the next bouncing level remains at $4,750.
While market capitalization has increased, the bitcoin price has overcome all technical lines. Therefore, technical indicators are ready to track prices up, where they are currently converging near $5,800. From there, it looks like the rise will be cut down to a new convergence level near $5,150, testing the $4,750 support.
Japanese Candlestick signals favor a lateral market near $5,800 depending on Soldier reinforcements entering the battlefield, taking advantage of the Crows´ mess before they take hold of the situation again. If demand remains constant, though, Crows will gain more strength and make another attempt at pushing the bitcoin price down.
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]
Image via Pixabay
This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.
Source: Read Full Article