The leading RoboForex analyst Dmitry Gurkovsky discusses potential scenarios for Bitcoin’s price movement.
Bitcoin quotes continue to correct within the ‘Triangle’ pattern. Typically, markets break such patterns in the direction of the prevailing trend, so an exit from the pattern upward is expected. Such a move would indicate the price holding above an important resistance level, after which the next obstacle to a bullish rally would be the $20,000 level.
The pattern is visible on the four-hour chart as well, where there is also a bounce off the RSI support line, a strong signal in favour of the asset’s price growth. The positive scenario for buyers could be undermined if the price closes below $14,205. In that case, not only would the lower boundary of the ‘Triangle’ be breached, but also the channel boundaries.
4-hour BTC/USD chart from TradingView (Bitstamp).
In response to this, reacted with a fall not only in the cryptocurrency market, but also in gold prices.
Technical analysis of the daily chart for Bitcoin points to the potential for continued upside. Here, there was a breakout of the upper boundary of the long-term ascending channel, which is a very strong signal in favour of price growth. The move could continue to the width of the channel, though there are as yet no clear signals from the RSI indicator. Values remain above the overbought level, indicating the strength of the current upside trend.
Daily BTC/USD chart from TradingView (Bitstamp).
Many investors note that the altcoin market generally does not rise until Bitcoin’s price begins a strong ascent. It is possible that Ethereum is currently undervalued by investors and will soon show the same vigorous growth as on the BTC/USD chart.
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