Bitcoin Price Analysis #3 – Bitcoin Reaches Support at $3569. Can the Bulls Prevent Price Action Heading Further Lower?

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Bitcoin Price Analysis

Bitcoin has seen a small price decline totalling -0.12% over the past 24 hours of trading, bringing the current trading price down to around $3599. The market has seen a -2.82% price drop over the past 7 trading days with a further -10.51% price drop over the past 30 trading days.

Bitcoin has seen a rise in volume, trading a total of $5.14 billion over the past 24 hours of trading.

What is the current market cap of Bitcoin?

Bitcoin is currently holding a $62.64 billion market cap valuation after losing a significant -44% over the past 90 trading days. The 69 month old project is now trading at a value that is 81% lower than the all time high price.

Let’s take a look at price action for BTC/USD and highlight some potential areas of support and resistance moving forward.

BTC/USD – SHORT TERM – 4HR CHART

https://www.tradingview.com/x/VhB1CawK/

What’s been going?

Since our last analysis, Bitcoin has plummeted through the bottom border of the ascending channel previously identified. The cryptocurrency continued to fall past the support at the short term .618 Fibonacci Retracement level (drawn in green) priced at $3664.

Where are we now?

The market continued to fall further lower until reaching support beneath at the short term downside 1.272 Fibonacci Extension level (drawn in blue) priced at $3569. After reaching this area of support we can see that the market decline has stalled and proceeded to start to trade sideways.

What is the current trend?

The current trend of the market is still neutral until price action reads below $3569. If price action does break below $3569 then we can consider that the market trend has turned into a bearish trend.

For this market to now be considered bullish, we would need to see price action break up above the $3850 handle.

Where can we go from here?

If the bulls continue to drive price action for BTC/USD higher we can expect immediate resistance toward the upside to be located at the short term .618 Fibonacci Retracement level (drawn in green) priced at $3664.

If the buyers can continue to break above this, we Bitcoin will then meet further higher resistance at the bearish .5 Fibonacci Retracement level (drawn in red) priced at $3851, closely followed by further resistance at the short term 1.414 and 1.618 Fibonacci Extension levels (drawn in purple) priced at $3896 and $3942.

IF the bullish pressure continues to drive the market even further higher, more resistance can then be expected at the bearish .618 and .786 Fibonacci Retracement levels (drawn in red) priced at $4001 and $4215, respectively.

What if the bears push the price below $3569?

If the bears begin to push price action lower and cause Bitcoin to break through the support at $3569, we can expect immediate support below to be located at the short term downside 1.414 FIbonacci Extension level (drawn in blue) priced at $3508, closely followed by more support at the short term .786 Fibonacci Retracement level (drawn in green) priced at $3467.

IF the sellers continue to push BTC/USD even further lower we can then expect more support below to be located at the short term downside 1.618 Fibonacci Extension level (drawn in blue) priced at $3421, followed by the short term .886 Fibonacci Retracement level (drawn in green) priced at $3350.

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