Bitcoin Price Analysis
Despite the recent 10% fall in Bitcoin price yesterday, the BTC/USD market is still up by 7% over the past 30 trading days. Bitcoin has seen a further 1% fall over the past 24 hours bringing the current trading price down to around $3886.
What is the current market cap of Bitcoin?
Bitcoin now has a market cap of $67.45 billion, up $610 million from yesterday.
BTC/USD – 1-DAY CHART – MEDIUM TERM
What has happened since our last analysis?
Since our last Bitcoin price analysis, we can see that the market has found some form of stability at our highlighted support area at the short term .5 Fibonacci Retracement level (drawn in green) priced at $3842.
This level of support is further bolstered by the 21 day EMA (purple line) which is located in the same area.
What is the current trend?
The market remains neutral in the short-term in the midst of a very long term bear market. If price action falls beneath $3800 we can consider this market as bearish. For this market to be considered bullish we would need to see a clean break above the resistance at the $4215 level.
Where Is The Market Likely To Head Next?
The buyers are doing their best to hold the support at $3842. However, after such a steep downturn, it is likely that the market may head a little further lower.
If this is the case and BTC/USD does break beneath $3842, we can expect immediate support below to be located at the short term .618 Fibonacci Retracement level (drawn in green) priced at $3740.
If the selling pressure continues to push the market beneath $3740, more support is then located at the $3650 handle. More support follows at the short term .786 Fibonacci Retracement level (drawn in green) priced at $3591.
What if the buyers step back in?
Alternatively, if the buyers regroup at the $3842 support level and begin to push BTC/USD higher, we can expect immediate resistance above to be located at the bearish .618 Fibonacci Retracement level (drawn in red) priced at $4001. The aforementioned bearish Fibonacci Retracement is measured from the high of November 2018 to the low in December 2018.
Further resistance above $4000 lies at the bearish .886 Fibonacci Retracement level (drawn in red) priced at $4342. More resistance follows at the 1.618 Fibonacci Extension level (drawn in orange) priced at $4440.
What are the technical indicators showing?
Price action has found support at the 21 EMA and has remained above the moving average. This is a positive sign for the bulls if price action can remain above the moving average.
The RSI has returned to the 50 handle after a brief drop below. If the RSI can continue to climb and break above the 50 level the bulls will resume control of the market momentum.