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The Bitcoin price is trading inside a descending channel and has reached a minor support area. If it completes the fifth wave and follows a previous pattern, it will increase towards $7800.
Bitcoin Price Highlights
- The Bitcoin price is trading inside a descending channel.
- There is minor resistance at $7280 and $7420.
- There is minor support at $7140.
- The price has possibly completed the fourth wave of a five wave Elliott formation.
Descending Channel
The Bitcoin price has been trading inside a descending channel since December 23. It has validated both the resistance and support lines thrice. Additionally, once the price reached the minor support area at $7140, it created a long lower wick and began an upward movement to the previous breakdown level and the descending resistance line.
Bitcoin Trading Range
Higher time-frames reveal the Bitcoin trading range since November 20. The price is currently in the upper portion of the range, between $7100-$7600. While the channel is a neutral pattern and technical indicators do not point one way or the other, the current price structure allows for a placement of a stop loss in order to navigate open position. Placing one below the current wick lows of $7050 would prevent losses in a possible rapid decrease towards $6600, since we do not believe the minor support area at $6900 will be able to initiate a reversal, due to the lack of support.
Elliott Formation
The Bitcoin price is likely completing a five-wave Elliott formation. Inside it, there is another possible pattern developing. The price has followed a bullish engulfing candlestick with three smaller candles that have been contained in the prior bullish candlesticks body. If the price follows the same pattern again, it will create a bullish engulfing candlestick today towards the range highs of $7800.
To conclude, the Bitcoin price is trading in a neutral channel. While the outlook is uncertain, we believe it is more likely to increase towards $7800. A decrease below $7000 would likely invalidate this possibility and cause a rapid decrease, so the use of a stop loss is mandatory.
Good luck and happy trading! For our previous analysis, click here.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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