Financial market forecasts are the private opinion of their authors. The current analysis does not constitute a trading guide. ForkLog does not assume any responsibility for the results that may arise from the use of the trading advice provided in the reviews.
Leading RoboForex analyst Dmitry Gurkovsky talks about further possible scenarios of bitcoin price movements.
Bitcoin price has broken through the level of $18,000 for the first time since December 2017. However, the mood among traders is polar: some believe in aggressive growth of the asset and say that this is just the beginning of a bullish rally, Bitcoin Supersplit while others expect a deep correction. In their view, large institutional investors are not ready to buy at peaks and are waiting for low prices to buy well.
Indeed, as soon as the price approached $18,500, there was a strong bounce down to $17,200, but even so, traders are not afraid of increased volatility and are willing to buy.
We could see a similar correction at the time of the $16,000 test when the price fell to $14,300 and instantly returned. Most likely, as the quotes approach their absolute maximum, the correction could reach several thousand dollars, so we must be ready for a serious increase in volatility in the near future.
From a technical point of view, the current trend remains quite strong. On the daily chart, BTC/USD quotes confidently cross the upper limits of upward channels, which is a strong signal in favor of further growth of the asset. It seems that in the near future the bulls will easily break through the $20,000 level. In this case, the following growth targets could be the $22,000 and $25,000 levels.
The Bitstamp BTC/USD daily chart from TradingView.
On the 4-hour chart after today’s correction, there are prerequisites for the formation of a Diamond pattern, which can act as a model for trend continuation in the event that its upper boundary is broken.
It is also worth paying attention to the behaviour of the RSI indicator, where values are rarely below 30, indicating strong pressure from buyers at moments when the downtrend correction develops.
All of these factors indicate that the BTC/USD absolute maximum is breaking through quickly and quickly.