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Bullish Trading Ahead? Bitcoin Price Sees New Technical Patterns

Source: bitcoin

Bitcoinist_Traditional Finance

Technical indicators suggest that the bitcoin price could be preparing for a rather significant correction, potentially sending it below $600. Traders shouldn’t have too much to fear though, as the decline is expected to be followed by bullish activity, resulting in a rise to $700 and beyond, hitting resistance at $1000.

Also read: Industry Report: The Halving That Came and Went

Bitcoin Price Looking Bearish, but Not for Long

Long-Term Analysis

After a year where a rounded bottom pattern was perfectly accomplished, a new big pennant had taken place into the mid-term trading box, created as a result of the sideways lateral market that professional traders´ work let behind their accumulation activities. Perhaps we could see another month in the same price level while prices perform this pennant, which could become a bigger flag formation.

This kind of well-known pattern may also create a bullish consensus that provides some up-sliding of the trading box from the $600 support to the long-term Fibonacci resistance at $820, starting the first wave of the Elliot´s theoretical pattern staying inside the next level box with a probable ladder step rebound at the $700 support level. All of these movements will occur in a major zig-zag advancing pattern toward the second box´s higher resistance of $1000.

Mid-Term Analysis

Forming a kind of trading box with support at $600 and resistance at $820, prices had composited other patterns that could help traders to figure their marketplace, like several rising lines that provide reference for making decisions.

Meanwhile, prices advance in a slow rising zig zag movement, which should become a fireworks show of growth in about 2 months’ time, when the third phase of Elliott wave theory gets real in the charts.

Right now, mathematical oscillators are giving enough signals to sustain the bullish consensus, and to allow the suspicion of far higher prices at the end of the year.

When the present flag pole reaches the $820 resistance, the support will have to be relocated at $700 like a ladder step rise sliding the box to next level.

Short-Term Analysis

According to volume indicators and candlestick analysis, prices are preparing for a down movement, which may create panic selling from weak hands. This selloff would hit a big support level below $600—probably near 580—where strong hands and big players could be planning their purchases.

After this probable downward slide, the next movement in the present trading box could send prices upward for another 100 points, performing a fast rebound to $820.

Following that rise, a bear correction will send the bitcoin price to a new support level around $700, launching a new sideways lateral movement with resistance at $1000. This trading pattern is expected to hold for the next two weeks.

What do you think will happen to the bitcoin price? Let us know in the comments below!


Featured image courtesy of Shutterstock.

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Bullish Trading Ahead? Bitcoin Price Sees New Technical Patterns

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Čvn 19

Technical Analysis: Bitcoin Price Cycle Nearing a Close

Source: bitcoin

Bitcoin Price Technical Analysis

While fundamental analysts predict a continued rally to $1000 and beyond for the foreseeable future, technical indicators paint a more detailed picture. According to the charts, the ride up to $1000 will be bumpy, with periods of profit taking and resistance, especially around the $800 range. 

Also read: Blockchain as the Matrix: Are We Entering a Virtual Life?

Technical Analysis: Bumps in the Road

Long-Term Analysis

 

Almost at the $820 technical objective level, a distribution zone could take place with a trading box among this resistance and $600.

Indicators reflect fiction prices at this level, with irregular trading volume because of the distribution activity depending on the fresh demand of new holders. However, the less volatility there is in a resistance level allows the contrary opinion theory, and main players should be placing their profit taking with a re-buying strategy at $600.

Major figures have been accomplished, and Fibonacci is getting fulfilled, as well as the Gann Angles Theory, rounded bottom pattern and every mathematical forecast.

Only news and fundamentals support the present climbing, and any of those components have the capability to smash the present scenario for a technical correction that ends the cycle to start another from the $600 level, with a sideways trading box zig-zagging to $820, leading into a rise to 1800 at the end of 2016.

Mid-Term Analysis

Now, prices are rising, reaching the distribution zone at $820 / $790, where a heavy short marketplace is expected.

According to indicators, the up-trend line is strong enough to accomplish this technical objective and to end this mid-term cycle with a short correction to $600, placing the quotes into a trading box among $820 and $600 in a three-month sideways lateral market that zig-zags the chart, ending the present scenario and starting a fresh one from the box to new technical objectives around $1800 at the end of 2016.

Only political data, fundamentals and hot news are sustaining the present rise, adding the wishful thinking of current players whom are anticipating a continued rally to the $1000 level.

Technical analysis points to a different situation introducing the possibility of a short distribution zone around $820 and re-buying area at $600 in a zig-zag movement for the next time period.

Short-Term Analysis

The only support remains at $600, while prices head towards resistance at $820, getting into a trading box with these top and bottom levels.

There are not any minima to take in account as with the mid-term analysis, but volume isn’t thick enough to ensure any of the picks as a technical goal.

If a correction movement takes place, it would be the end of a large cycle from the $1200 high in December 2013, and the start of after a zig-zag sideways lateral box lasting three months with 200 basis points in a trading active range, which can be considered by the direct observation of the volume activity.

As with every trading range, contingent orders will be placed in a pyramid model that recognizes the oscillator signals of slow stochastics and RSI from below $630 and over $790, in an attempt to harvest profits that lowers the main position cost in the forecasting of the new cycle rise to $1800 for the end of 2016.

Bitcoinist is not responsible for any gains or losses incurred while trading bitcoin. Trade at your own risk.

 

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Technical Analysis: Bitcoin Price Cycle Nearing a Close

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BitcoinAverage: Bitcoin Price Stirs Up Bullish Sentiment

Source: bitcoin

Financial Markets

Apr. 11 – 19, 2016 — Over the week of Apr. 11 – 19, the bitcoin price showed early signs of a bullish renewal. The price moved up steadily, +3.6%, on an Apr. 16 high of $435.67 registered at bitcoinaverage.com.

This article was provided by the Vanbex Group on behalf of BitcoinAverage.

This is the highest mark since Mar. 1, which must have excited traders with the prospect of a continuation bull trend that began on September 7.

But, there remains a sense of caution with market analysts awaiting a retest of levels to confirm support for an uptrend.

A user on Reddit said:

“The only thing that gives me any pause in my bullishness is the utterly irrational exuberance I feel right now given the shape of the chart on a wide variety of timescales.”

The last time the price was at these levels, which was on Mar. 1, it was preceded by a sell-off to $382, but the price quickly retraced to trade within a range.

As seen on this chart, the upper and lower limits touched $423 and $427, breaking strongly above $423 on Apr. 14 (encircled), a clear sign of intent.

This time, it was markedly different from a similar attempt on Mar. 26 that faltered just below $428, making this week’s breakout not one to be easily brushed away.

 

On the 3d chart on bitcoinaverage.com, the marginal price changes on lower time frames are difficult to pick out.

Price is still largely in a sideways trend, evidenced by the lowest 30-day volatility in history and currently tied for second on the 60-day chart, 0.74% and 1.31% estimates, respectively.

$440, marked by a bold line, is the most significant level now, as a support/resistance level going back to December 2015.

It is no coincidence that price stalled right below this level, and continues to correct lower. As of writing this, the price sits at $429.

 

Speculators point to the pattern above from the three-day charge, a pennant symmetrical triangle.

Bulls say it is a continuation pattern within the overall trend from the Aug. 24 $198-low. The apex point, where a breakout is expected, is yet to converge as the price lingered between the lower sloping trendline and upper sloping support line.

There has been no confirmation break out, just more sideways action, albeit on a wider range, and this may persist till May.

 

The market is at a critical point, sitting on top of a 20-month resistance level at $400 (1).

Back in August to November 2014 (2), the price was unable to break back above it after an accelerated sell off to $275. A double top rejection preceded a continued bear trend.

At (3) this level is being retested, this time from the bottom. Since November 2015, the price has oscillated around this mark, fueling current uncertainty.

If this level holds, an upward run would follow with a magnitude as large as the sell-off in November 2014. Pricing targets for this scenario sit around, at very least, $650.

 

 

Bitcoin Price Forecast

This week, the price will continue on its retracement from $435 top, down to a support, as low as $420.

This price is low enough to respect the higher lows on the rising trendline, while still respecting the critical $423 as support for a continued uptrend.

The best case scenario is a $425 hold with a renewed uptrend taking over.

Nevertheless, Bitcoin looks bullish over the coming months.

The triangle pattern highlighted is a high probability continuation pattern, and it is now a matter of waiting it out.

The question is how long it will take to pop and when. Price has been stable on the price range since January and volatility is down. It is at a good level for a launch pad to higher marks.

The fundamentals around the bitcoin protocol are better than they were three months ago.

Core is making progress on Segregated Witness, an alternative soft fork approach to increase block capacity. News from China suggests miners are backing Core as well, while Bitcoin Classic, a hardfork capacity increase, has all but faltered.

With the block reward halving around the corner, everything looks ripe for another leg-up.

The post BitcoinAverage: Bitcoin Price Stirs Up Bullish Sentiment appeared first on Bitcoinist.net.

BitcoinAverage: Bitcoin Price Stirs Up Bullish Sentiment

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