Bitcoin (BTC) Price Analysis #7 – Bitcoin Breaks Above $3800 To Create Fresh Highs For February 2019 – Can The Bullish Momentum Persist Higher?

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Bitcoin Price Analysis

Bitcoin has increased by a total of +2.97% over the past 24 hours of trading, bringing the current market price up to around $3806, at the time of writing. This has created a fresh high for February 2019 in market price.

Despite this price rise, the market still has a long way to recover after losing -32% over the previous 90 trading days.

What is the current market cap of Bitcoin?

The current market cap of Bitcoin is now at $65.82 billion. The 70 month old cryptocurrency originator is now trading at a value that is 80% lower than the all time high price.

BTC/USD – DAILY CHART – MEDIUM TERM

https://www.tradingview.com/x/dlh8Ga4B/

What has happened since our last analysis?

Since our last BTC analysis, we can see that price action had managed to hold at the short term downside 1.618 Fibonacci Extension level (drawn in blue) priced at $3421.

The market had reversed at this level of support and proceeded to rally aggressively. It had originally met resistance at the short term .5 Fibonacci Retracement level (drawn in green) priced at $3802 before stalling for a few days.

However, over the previous trading session, price action has continued further higher until meeting resistance above at the bearish .5 Fibonacci Retracement level (drawn in red) priced at $3851.

Price action has since retraced slightly and is now trading at support at the $3802 handle.

What is the current trend?

The current trend is undoubtedly bullish at this moment in time. For this trend to be considered bearish we would need to see price action break below the $3600 handle.

Where can we go from here?

If the bullish momentum can cause BTC/USD to break above the resistance at the bearish .5 Fibonacci Retracement level (drawn in red) priced at $3851, we can expect higher resistance to be located at the $3882 handle.

More resistance above $3882 can then be expected at the short term 1.272 and 1.414 Fibonacci Extension levels (drawn in purple) priced at $3906 and $3961, respectively.

If the buyers continue to drive price action higher, there is more resistance at the bearish .618 Fibonacci Retracement level (Drawn in red) priced at $4001. This is followed with resistance at the short term 1.618 Fibonacci Extension level (drawn in purple) priced at $4040.

What if the sellers step back in?

Alternatively, if the sellers regroup and begin to push price action below the $3800 handle, we can expect support beneath to initially be located at the $3741 level followed with support at the short term .618 FIbonacci Retracement level (drawn in green) priced at $3664.

What are the technical indicators showing?

The RSI is well above the 50 handle which indicates that the bulls are in complete control of the momentum within the market. If the RSI can continue to rise we can expect the bulls to push price action further higher.

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