Bitcoin Price Analysis #2 – Bitcoin Breaks Above $3700. Can the Bulls Now Break Above $3851 to Continue Further Higher?

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Bitcoin Price Analysis

Bitcoin has seen a price increase totalling +1.83% over the past 24 hours of trading bringing the current trading price up to around $3764, at the time of writing. The market has now seen a 7 day price hike totalling +1.86% but is down by a small -2.81% over the past 30 trading days.

Bitcoin has seen a total 24 hour volume totalling $5.34 billion, at the time of writing, as the volume remains consistent to yesterday’s trading volume,

What is the market cap of Bitcoin?

Bitcoin now has a market cap totalling $65.27 billion, up over a billion from yesterday. The cryptocurrency now has seen a 90 day price decline totalling -43% and trades at a value that is -80% lower than the all time high price.

Short Term BTC Analysis

BTC/USD – SHORT TERM – 4HR CHART

BTC/USD - SHORT TERM - 4HR CHART
https://www.tradingview.com/x/7aUZzRrf/

What’s been going on?

Since our analysis yesterday, we can see that Bitcoin has risen from the previously identified support at the short term .618 Fibonacci Retracement level (drawn in green) priced at $3664. This Fibonacci Retracement is measured from the low seen in December 2018 to the higher $4342 placed toward the end of December 2018.

After price action began to rise for BTC/USD, we can see that the market had met resistance at the bearish .5 FIbonacci Retracement level (drawn in red) priced at $3851. This bearish Fibonacci Retracement is measured from the high in November 2018, before the November 2018 market collapse, to the low seen during mid-December 2018.

Where are we now?

Price action has briefly declined slightly after reaching this level of resistance to where it is trading now at around $3764.

It is important to highlight that Bitcoin has now established a very short term ascending trading channel which will dictate the price movements until a breakout is found to either direction.

What is the current trend?

The current trend in the short term is mildly bullish as price action trades within an ascending trading channel. The trading condition will turn to bullish if price action can break above the bearish .5 Fibonacci Retracement level (drawn in red) priced at $3581 or if BTC/USD can break above the ascending channel.

If Bitcoin breaks below the ascending channel, we can expect the market condition to turn to bearish.

Where can we go from here?

If the bulls continue to cause BTC/USD to climb higher, we can expect immediate resistance to be a the bearish .5 Fibonacci Retracement level (drawn in red) priced at $3581. If they can break above this level, more resistance will then be expected at the short term 1.414 and 1.618 Fibonacci Extension levels (drawn in purple) priced at $3896 and $3942, respectively.

If the buyers can continue to push price action higher, we can expect higher resistance to then be located at the bearish .618 Fibonacci Retracement level (drawn in red) priced at $4001.

Further resistance above the $4001 handle can then be expected at the bearish .786 and .886 FIbonacci Retracement levels (drawn in red) priced at $4215 and $4342, respectively.

What if the bears take control?

Alternatively, if the bears regain control of the market and push price action lower, we can expect immediate support to be located at the lower boundary of the ascending channel.

If the sellers push price action below the lower boundary we can then expect more support to be located at the short term .618 FIbonacci Retracement level (drawn in green) priced at $3664.

If BTC/USD breaks below the $3600 handle, more support can then be expected at the short term downside 1.272 and 1.414 FIbonacci Extension levels (drawn in blue) priced at $3569 and $3508, respectively.

Further support below can then be expected at the short term .786 and .886 Fibonacci Retracement levels (drawn in green) priced at $3467 and $3350, respectively.

What are the technical indicators showing?

On the 4HR chart, the RSI is well above the 50 handle indicating that the bulls are in control of the market momentum. During this current retracement, if the RSI can remain above the 50 handle we can expect price action to continue further higher after rebounding.

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