In Our news story of a few days ago, Bitcoin Price Near-Term Neutral, we stated, “After shooting up in price to near $500 USD late last year, the price of Bitcoin has been consolidating in the $400’s for the past two months. Technical analysis shows a near term neutral stance on Bitcoin’s price.” That process of consolidating in the $400’s is continuing.
We believe that Bitcoin has reached a temporary plateau and is currently building a base in the lower half of the $400’s from which it will launch its next rapid rise.
Bitcoin price stayed in a bullish territory this week against the US Dollar, and it looks like there is a chance of it gaining in the short term. There is an ascending channel pattern formed on the 4-hours chart of BTCUSD, which may play a crucial role for both buyers and sellers moving ahead.
No doubt, BTC buyers are struggling to gather pace, but since the price is above the 100 simple moving average (H4), there is a possibility of a spike higher before it finds sellers.
If the highlighted channel support trend line holds, then the price may spike once towards the upper channel resistance trend line. The 76.4% Fib retracement level of the last drop from the $448 high to $409 low is acting as a hurdle for buyers.
Traders, speculators, and most professional financial investors use price charts to graphically illustrate recent price action. Chart analysis works because human nature doesn’t change. The pendulum continually swings back and forth from fear to greed, also known as risk-on and risk-off. These continuous swings in investor sentiment show up in recognizable price patterns, and thus the ability to use charts to predict future price movements and targets.
Even so, future price predictions are never 100% accurate. When if comes to Bitcoin price prediction, the challenges of coming up with an accurate forecast are even greater than they are in more traditional, established markets.
Themerkle.com weighs in:
One thing people can hardly argue about is how difficult it can be to estimate the upcoming Bitcoin price. Even when it comes to guessing the value in an hour from now, the result could be way different than what people anticipate it will be. But that isn’t keeping enthusiasts from posting their daily and weekly technical analysis, as well as a prediction of what the Bitcoin price might bring in the coming days.
While there are plenty of platforms to learn more about analyzing price charts and exchanging thoughts and ideas with like-minded people, Bitcoin has proven to be rather fickle creature in the financial world. The Bitcoin price responds in an untraditional way on the good, bad, and regular news.
Bitcoin price analysts have to keep in mind how there are a ton of different factors which can affect the value of one BTC at any given time. There are still lots of speculators holding semi-large amounts of digital currency, which can be sold at any given moment. This scenario of the so-called bears and bulls is not uncommon in the Bitcoin world, although is is taking place far less frequent than before.