Bitcoin Price Analysis #5 – BTC/USD Fails to Hold Above the $3700 Handle But Can the Bulls Defend the $3569 Handle?

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Bitcoin Price Analysis

Bitcoin has seen a small price decline totalling -1% over the past 24 hours of trading, bringing the current trading price down to around $3614, at the time of writing. Bitcoin has now seen a -3.21% price drop over the past 7 trading days with a further -5.29% pricefall over the past 30 trading days.

What is the market cap of Bitcoin?

Bitcoin currently holds a $62.94 billion market cap valuation. The market has seen a small increase in volume over the past 24 hours to $5.15 billion.

Let us continue to take a look at the BTC/USD market over the short term and highlight some potential areas of support and resistance moving forward.

BTC/USD – SHORT TERM – 4HR CHART

https://www.tradingview.com/x/T4hsVZcm/

What’s been going on?

Since our last BTC analysis, Bitcoin has gone on to rally further higher. The market had rebounded from the support at the short term downside 1.272 FIbonacci Extension level (drawn in blue) priced at $3569 and had managed to break above our resistance at the short term .618 Fibonacci Retracement level (drawn in green) priced at $3664.

After breaking above the resistance, price action reached a high around $3750 before rolling over and falling below the $3664 support once again to where it is currently trading around the $3614 handle.

What is the current trend?

The current trend is still NEUTRAL as price action had broken back below the $3664 support. For this market to be considered bullish we would need to see price action break above the $3851 handle. For this market to be considered bearish we would need to see price action break below the $3569 handle.

What do we think may happen next?

IT is likely that BTC/USD will continue to fall back into the support at the short term downside 1.272 Fibonacci Extension level (drawn in blue) priced at $3569. Hopefully, when price action reaches this area of support the market will hold at the level and rebound.

After the market rebounds, we can expect resistance toward the upside to be located at the short term .618 FIbonacci Retracement level (drawn in green) priced at $3664, again.

If price action can clear this level and head above the $3750 handle, we can expect higher resistance to then be located at the bearish .5 Fibonacci Retracement level (drawn in red) priced at $3851.

Further resistance above this can then be located at the short term 1.414 and 1.618 FIbonacci Extension levels (drawn in purple) priced at $3896 and $3942, respectively.

What if price action breaks below $3569?

Alternatively, if the market does not hold at the support at the $3569 handle hand penetrates beneath, 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.

This is then followed by more support at the short term .786 Fibonacci Retracement level (drawn in green) priced at $3467 and further support at the short term downside 1.618 Fibonacci Extension level (drawn in blue) priced at $3421.

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