Where will bitcoin go after consolidation



Where will bitcoin go after consolidation

Where will bitcoin go after consolidation

  • BTC is following a long-term downtrend line of resistance.

  • The price met support above the 200-week moving average.

  • Bitcoin Follows Rising Support Line Since March 13.

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Bitcoin has reached an important trend line that has been on the charts since hitting an all-time high in December 2017. The reaction of quotes to this line will determine their future dynamics..

Where will bitcoin go after consolidation

Below we will consider possible options for the further direction of movement of the main digital currency..

Completing rollback

The current trend looks like a new bullish move, while the correction ended in December 2018. Since then, the price has formed a five-wave Elliott pattern and is now in the process of a third wave.

This is supported by a sharp rebound from the 200-week moving average – in December 2018 and in March this year..

At the same time, the coin reached the downward resistance line, which has remained relevant since December 2017. Token As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More has confirmed her status for the fourth time. To confirm the presence of a wave structure, Bitcoin must break the trendline and ideally form an upward high relative to the July 2019 level. It is about a breakout above $ 14,000.

Correction in a triangle

It is also possible that bitcoin is in the stage of correction in the form of A-B-C-D-E, inside a symmetrical triangle. Now the price is in the stage of wave D, which is realized in the form of an A-B-C pattern (red lines on the chart).

Where will bitcoin go after consolidation

To confirm this structure, BTC should rebound sharply from the resistance line and then proceed with a bearish correction in the A-B-C shape, which should end around $ 6,000.

Short-term dynamics

On April 30, Bitcoin formed a shooting star candlestick pattern, which is considered a bearish reversal pattern. The candlestick formed at decent trading volumes. The fact that it also features the previously mentioned resistance. It only emphasizes the importance of this level. Subsequent daily candles look too modest in comparison to the “shooting star”.

Also, Bitcoin has been following the upward support line (dashed line) since the formation of the bottom on March 13. In the case of a bullish scenario, quotes will lower to the support line, then rebound and begin an ascent, which should lead to a breakout of the long-term descending resistance line.

The bearish scenario suggests a similar fall from the current resistance line. However, BTC may then bounce off resistance once again before breaking through the upward support line (dotted line) and dipping towards $ 6,000..

In other words, the reaction of quotes to an upward support line will determine whether the token will be able to break the long-term downward resistance line.


Where will bitcoin go after consolidation

So, BTC has reached an important resistance line and is likely to rebound in the direction of the newly formed $ 8000 upward support line. The reaction of quotes to this line – bearish breakout or bounce – will determine the probability of a long-term bearish trend breakout. In both scenarios, the bottom reached on March 13 will serve as an important low for the foreseeable future..



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