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/

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram