Bitcoin (BTC) Price Analysis #8 – BTC Above $4000 – Where Is The Next Stop?

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Bitcoin Price Analysis

Bitcoin has seen a further price increase totalling 3.31% over the previous 24 hours of trading, bringing the current trading price up to around $4055, at the time of writing. The market has now seen a further 6.91% price hike over the past 7 trading days.

What is the current market cap of Bitcoin?

Bitcoin currently holds a $69.94 billion market cap valuation and remains the most dominant cryptocurrency. The 70 month old project has lost a total a total of 12.39% over the past 90 trading days as it now trades at a value that is 79% lower than the all time high price.

BTC/USD – 4HR CHART – MEDIUM TERM

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

What has happened since our last analysis?

Since our last price analysis, price action has risen further higher. We can see that the market had managed to penetrate above the short term .5 Fibonacci Retracement level (drawn in green) priced at $3802. The market then went on to rise through resistance at $3851 and $4001 to where it is currently trading at the $4050 handle.

What is the current trend?

The current trend remains bullish. For this market to be considered bearish, we would need to see a break below the $3600 handle.

Where can we go from here?

If the bullish momentum can continue to cause BTC/USD to break above the resistance at the $4055 handle, we can expect immediate higher resistance to be located at the short term 1.272 and 1.414 Fibonacci Extension levels (drawn in blue) priced at $4159 and $4218, respectively. The resistance at $4218 is further bolstered by the bearish .786 Fibonacci Retracement level (drawn in red) priced in the same area, adding further to the expected resistance here.

Further resistance above $4218 can then be expected at the short term 1.618 Fibonacci Extension level (drawn in blue) priced at $3404. This is followed with more resistance at the bearish .886 Fibonacci Retracement level (drawn in red) priced at $4342.

The final level of resistance toward the upside to highlight is located at the medium termed 1.618 Fibonacci Extension level (drawn in orange) priced at $4450.

What if the sellers step back in?

Alternatively, if the sellers step back in and begin to push price action lower for BTC/USD, we can expect immediate support below to be located at the bearish .618 Fibonacci Retracement level (drawn in red) priced at $4001.

If the bears continue to push price action below $4001, we can then expect more support beneath to be located at the bearish .5 Fibonacci Retracement level (drawn in red) priced at $3851.

What are the technical indicators showing?

The RSI remains in the overbought areas on the 4HR time frame. This indicates that the bulls may be slightly stretched and the market may drop slightly to allow room for the market to breath before taking its next wave higher.

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