Bitcoin (BTC) Price Analysis: Long-Term Reversal Pattern Almost Complete

Bitcoin (BTC) Price Analysis: Long-Term Reversal Pattern Almost Complete 13

Bitcoin failed in its last two attempts to break below the $5,800 area, creating a double bottom visible on longer-term time frames. Price is halfway through the climb to the neckline around the $8,400 level to complete this classic reversal formation.

A break past the neckline resistance could confirm that a longer-term uptrend is in the works, possibly lasting by the same height as the chart pattern. However, the 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, there’s still a strong chance for the selloff to resume, especially since there’s no sign of a bullish crossover just yet.

RSI is on the move up to indicate that buyers could have enough energy left to push for more gains, possibly for a test of the 200 SMA dynamic inflection point next. However, this oscillator is closing in on overbought levels to signal exhaustion. Turning back down could lead to a return in selling pressure.

Stochastic has already made its way to the overbought region to indicate that buyers need to take a break and let sellers take over. In that case, a pullback from the recent climb could ensue, possibly until the 100 SMA dynamic inflection point. A larger dip could last until the bottoms again.

Bitcoin (BTC) Price Analysis: Long-Term Reversal Pattern Almost Complete 14

More and more analysts are reviving their bullish forecasts for bitcoin now that it appears to be making another attempt at the much-anticipated rebound for the year. The latest comes from Satis Group, which is an advisory firm offering services in ICOs and cryptocurrencies.

In a report titled “Cryptoasset Market Coverage: Valuation,” the group predicted that bitcoin is expected to approach $33,000 in 2019 and could be standing at $144,000 ten years from now. This group also predicts a huge rally for Monero, possibly rising by over 38,000% between now and 2028.