Bitcoin Price Analysis: Contrarian bulls will induce a rally towards $33,700
- BTC price sentiment is in extreme fear, which is contrarian bullish.
- Bitcoin price is forming a B wave triangle.
- Invalidation of the bullish thesis is a breach below the swing low at $26,500.
Bitcoin price sideways action is now becoming more clear. A rally could occur towards $33,700.
Bitcoin price is prepping for a breakout
Bitcoin price Fear and Greed index has been residing in extreme fear levels for over two weeks. This Index can be used as a contrarian bullish signal since more investors are unwilling to invest in the current BTC price leaves more room for smart money to accumulate large orders.
The Bitcoin price also hints at smart money involvement on the 6-hour chart as what was once thought of as a confusing sideways market is now coiling into a very bullish pattern.
Bitcoin price is forming a sideways triangle. The long sideways action justifies a wave B pattern from an Elliott wave perspective. It has disproportionate time spent in the $30,000 zone since the initial countertrend rally that occurred at $31,200 on May 13th. If the technicals are correct, one more countertrend profit-taking rally will occur with targets at $33,700 and $34,000 before strong bearish resistance returns.
BTC/USDT 6-Hour Chart
Invalidation of the bullish thesis is a breach below wave A at 28,630. If the bears manage to breach this barrier, the next target could be $23,500, resulting in a 20% decrease from the current BTC price.
https://alternative.me/crypto/fear-and-greed-index/
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
