After that bitcoin triangle drop that took many by surprise, we have to know what the next step is, is there going to be another price laretalization? Is it possible to fall further? In this article I will show you a summary of my bitcoin price analysis and the possible short-term outcomes I project.
In the recent past of bitcoin, precisely in the bear market of 2018 there was a similar resemblance to what is happening now. The price was in a right-angled triangle that broke down, and note the movement the price made right after dropping. The price went down a lot, there was a rebound and then it fell further to the bottom of the price. It is possible that this process will be repeated at the present time (obviously to a lesser extent) notice the similarity in the image below:
From this it is possible to do another analysis to know how much it can reach in this climb and what would be the background projected for this bitcoin fall. This $ 5920 markup was the price support throughout the 2018 corrective period, most experienced traders have placed their purchase orders in this price range, so if bitcoin happens to fall to this barrier it is important to know that a pump even if it's temporary.
For short symmetry I project that the price could pick up to around $ 8,800 if it beats the 200 period moving average, plus the RSI indicates an oversold area (28) that may be a signal for buyers to enter the market to achieve that. $ 8,800 target and per fibonacci we have an important retraction region drawn from the historical top which is point 0.236 which shows us $ 7052. It is also important to note that the price of bitcoin is being completely repelled by the moving average of 200 periods on the daily chart, all the candlesticks that tried to overtake closed below it, this shows us a great possibility of falling in the short term.
This point at $ 7,052 is also an interesting entry because it has many orders positioned at this value, giving us another possibility to pump (again even if temporary).
It is also interesting to note the formation of another right triangle at this point in the graph. Despite the indication of price oversold this formation may be infecting us fall. What can be projected is a buyer trap (if you don't know a buyer trap is when the price goes up, giving investors the urge to hit the market and then plummeting) before the price drops again to the expected $ 7,000.
With most signals pointing to a downturn, it is only natural that the market is in fear. Market sentiment analysis shows a desperation over this fall and a much greater fear of continuing to fall, if any whales among selling too many bitcoins as happened in this recent fall, market bots may end up doing another herd effect to bring down the market. price. We can only wait to see the outcome.
As I am following my bearish projection, what I am doing now is partial purchases with small values in case there is a reversal and the price turns uptrend (despite bearish, bitcoin is still quite unpredictable) taking advantage of the very bitcoin value. more attractive than the previous $ 10,000 and I placed higher capital buy orders close to $ 7,000 and also close to $ 6,000 which although I don't believe the price drops to that point is still something to consider. (just remembering that this is what I am doing, it is not an investment recommendation).
Thank you for reading, be carefully :D