It seems that the short term bullish Bitcoin momentum may still be on the table as BTC manages to remain stable today as the cryptocurrency rises by 0.34%. The coin is currently trading at a price of $3922 on Bitfinex at the time of writing and has held the support at the $3842 remarkable well.
What is the current market cap of Bitcoin?
The current market cap of Bitcoin is $67.80 billion.
Let us take a look at price action for BTC over the recent period and highlight some potential areas of support and resistance moving forward.
Bitcoin Price Analysis
BTC/USD – 4HR CHART – SHORT TERM
What has happened since our last analysis?
Since our previous BTC/USD price analysis, we can see that the Bitcoin market has managed to rebound from the support at the short term .5 Fibonacci Retracement level (drawn in green) priced at $3842.
The market then bounced into resistance at the short term .382 Fibonacci Retracement level (also drawn in green) priced at $3946. Price action is now currently trading between this range.
What is the current trend?
The market continues to remain neutral in the short-term. If price action falls beneath $3800 we can consider this market as bearish. A clean break above the resistance at the $4215 level would leave the market bullish.
Where Is The Market Likely To Head Next?
If the bulls can continue to regather momentum and break above the resistance at the $3946 level we can expect immediate resistance higher to be located at the bearish .618 Fibonacci Retracement level (drawn in red) priced at $4000. The bearish Fibonacci Retracement is measured from November 2018 high to December 2018 low.
Further resistance above $4000 is located at the $4055 level. More resistance follows at the bearish .786 Fibonacci Retracement level (drawn in red) priced at $4215.
If the buyers continue to climb higher, resistance is then expected at the bearish .886 Fibonacci Retracement level (drawn in red) priced at $4342.
What if the buyers step back in?
Alternatively, if the sellers increase their selling pressure and cause BTC/USD to break below the support at the $3842 level, we can expect immediate further support beneath to be located at the short term .618 and .786 Fibonacci Retracement levels (drawn in green) priced at $3740 and $3590, respectively.
Further support below $3590 is expected at the previous downside 1.618 Fibonacci Extension level (drawn in blue) located at $3421.
What are the technical indicators showing?
The 4HR RSI has recently approached the 50 handle to indicate that the market is in a state of indecision. If the RSI can climb above the 50 handle we can expect price action to start its climb back toward $4000 once again.