If you thought the ride to $640 was exciting, you might be in for a treat. The little flag pattern currently surfacing on bitcoin price charts could launch prices up from a trigger zone that points $820 as a technical goal.
After prices recognized a strong support area at $600, volume indicators reflected professional marketplace activity, suggesting that the next stage could be a breakaway psychological trigger among $620 and $650, pointing a technical goal near 820.
According to Elliott Wave Theory, the current movement should reach a higher scenario through the 5th phase, from where a profit taking would be considered.
Mathematical indicators are showing the same bullish signs that were present just before the big rally in late May.
However, current prices react with lag, reflecting some handling activity powered by bigger business players possibly implementing their bullish strategies at this level. This situation could only drive the markets to a technical synchronization to the up side, which would propel the bitcoin price into some kind of euphoric bubble.
A little flag pattern should be seen on the chart, and by the forecasting of its pole, prices would breakaway to the up side over $650, recovering the technical price objective at the $820 level.
According to Japanese candlestick analysis, the bitcoin price should go up, and the next technical scenario could be a continuous rise backed by fundamental data and political factors.
Staff opinion: We believe the bitcoin price will stay in the $630-$640 range for at least a brief period of time before testing higher levels. As usual, barring an unexpected buying frenzy, profit taking will hamper the rise. However, if current conditions remain constant, the lag caused by profit taking will only serve as a temporary hindrance during a larger trend upwards.
What do you think will happen to the bitcoin price? Let us know in the comments below.
Cover image courtesy of Hargreaves Lansdown.
This technical analysis is meant for informational purposes only. Bitcoinist is not responsible for any gains or losses incurred while trading bitcoin.
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