During May, the price of Bitcoin (BTC) fell slightly and fluctuated between $25,800 and $30,000. However, the monthly open and close prices closed the gap markedly. Although we have price action predictions, predicting the future price trajectory remains uncertain.
There are four analysts who have used different methods to predict market movements, and all have produced similar results.
THE NUMBER OF ELIOTT WARRANTIES FOR ACCURACY PROMISED DECREASE
One of the analytical methods is the Elliott Wave, which helps determine the direction of a trend based on long-term price patterns and investor sentiment. At the beginning of May, an Elliott Wave expert predicted that the price would reach a local top near $30,000 before falling to $26,500. And the fact that the price recovered and reached a local top near $30,000 as predicted.
Then, a popular trader predicted that the price would start a rally before “surrendering” and dropping to $20,000. Although the big drop hasn’t happened yet, there was a slight bounce and a drop that followed.
SHOW-Head-Shoulder MODEL FORECASTS BREAKDOWN Possibility
According to the Head & Shoulders pattern put forth by a crypto trader, a breakdown (bearish) will occur and BTC price will drop to $25,000. Although the price failed to reach the $25,000 target, a breakdown occurred and the price fell to a low of $25,800.
There were similar predictions from another trader who used horizontal levels to determine the next bottom. There was a strong rally afterwards, but not enough to overcome the neckline of the pattern. While BTC trades below this line, the downtrend continues. This is also consistent with the descending parallel channel identified earlier.
A price movement above the neckline will not confirm a bullish trend reversal as the price remains below the resistance line of the channel. So, only when BTC records a close above $28,500 can a bullish reversal be confirmed.
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