Bitcoin Price Analysis
Bitcoin has had a very turbulent period since our last analysis, after breaking above the $4000 handle creating a fresh 2019 high at $4282 the market then proceeded to roll over, falling a total of 10.70% from high to low. At the time of writing the market is currently trading at the $3863 level and is trading above support.
However, it is important to remember that after such a large precipitous fall in the market we can expect the sentiment to start to change and see the market drop further in the following days.
What is the current market cap of Bitcoin?
The market bloodbath has caused the market cap of Bitcoin to fall back below the $70 billion handle to where it currently lies at the $66.84 level.
BTC/USD – 1-DAY CHART – MEDIUM TERM
What has happened since our last analysis
The market had spiked higher during the day to create the fresh 2019 high at $4282 but the market was not able to maintain itself above this level as price action then went on to fall by a significant 10%.
We can see that price action has now fallen into support at the short term .5 Fibonacci Retracement level (drawn in green) priced at $3842.
What is the current trend?
The break below the $4000 handle has now turned the short term trend of BTC to neutral. For this market to be considered bullish we would need to see a clean break above the resistance at the $4215 level.
Where can we go from here?
After gaining over 25% from the low in February 2019 it is no surprise that the bulls have become exhausted and that price action has rolled over. We can expect the sellers to continue to drop price action slightly lower over the coming days.
If this is the case and BTC/USD falls below the support at $3842 we can then expect immediate support below to be located at the short term .618 Fibonacci Retracement level (drawn in green) priced at $3739.
If the selling momentum continues to drive the market beneath the $3600 level, we can then expect further support to be located at the short term .786 Fibonacci Retracement level (drawn in green) priced at $3591. This is closely followed with more support at the February low located at the downside 1.618 Fibonacci Extension level (drawn in blue) priced at $3421.
What if the buyers step back in?
Alternatively, if the buyers regroup and start to push the market higher above the current support at $3842, we can expect immediate resistance above to be located at the bearish .618 Fibonacci Extension level (drawn in red) priced at $4001.
This is then followed with higher resistance at the bearish .786 and .886 Fibonacci Retracement levels (drawn in red) priced at $4215 and $4342, respectively.
What are the technical indicators showing?
The RSI has now fallen steeply into the 50 handles. With the recently established bearish momentum, we may see the RSI continue to break beneath the 50 zone and drive the market lower.