Bitcoin Price Analysis #6 – Bitcoin Market Cap Drops Back Below $60 Billion – Can the Bulls Hold Support at $3421?

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Bitcoin Analysis

Bitcoin Price Analysis

Bitcoin has fallen by a total of -1.34% over the past 24 hours of trading, bringing the current trading price down to around $3446, at the time of writing. Bitcoin has now seen a loss totalling -16% over the past 30 trading days.

What is the current market cap of Bitcoin?

Bitcoin currently now holds a $59.91 billion market cap valuation after losing a significant -47% over the past 90 trading days. The market has seen a volume totalling $5.23 billion over the past 24 hours of trading.

Let us take a look at price action and highlight some potential areas of support and resistance moving forward.

BTC/USD – MEDIUM TERM – DAILY CHART

https://www.tradingview.com/x/lzG97ZVK/

What has happened since our last analysis?

Price action has dropped a substantial amount since our last analysis. The market was deviously trading above the short term downside 1.272 Fibonacci Extension level (drawn in blue) priced at $3569 at the time of our previous analysis but has since fallen.

The market dropped into support provided by the short term downside 1.618 Fibonacci Extension level (drawn in blue) priced at $3421. As the market reached this support, the downtrend halted and reversed.

It then went on to rally higher but was unable to overcome resistance at the short term downside 1.272 FIbonacci Extension level (drawn in blue) priced at $3569. Price action has since fallen further lower and is now approaching support at the $3421 handle once again.

What is the current trend?

The current trend in the short term is now bearish. If the market breaks below the support at $3421 then the overall trend will be bearish in the long term. For this market to be considered as bullish, we would need to see price action break above the $3570 handle.

Where is the market likely to head toward next?

As the market is currently in a bearish condition we can expect price action to continue to fall further lower. In this case, we can expect immediate support below to be located at the short term downside 1.618 Fibonacci Extension level (drawn in blue) priced at $3421.

If BTC/USD continues to drop below this level, we can then expect further support beneath to then be located at the short term .886 Fibonacci Retracement levlel (drawn in green) priced at $3350. This is closely followed with more support at a short term downside 1.272 Fibonacci Extension level (drawn in pink) priced at $3331.

If the market continues to fall even further lower, then we can expect more support beneath to be located at the short term downside 1.414 and 1.618 Fibonacci Extension levels (drawn in pink) priced at $3287 and $3217, respectively.

What If the bulls hold at $3421?

If the bulls can hold the support at the $3421 and cause BTC/USD to reverse, we can expect immediate higher resistance above to be located at the short term .786 Fibonacci Extension level (drawn in green) priced at $3467.

Further resistance above this will then be expected at the short term downside 1.414 and 1.272 Fibonacci Extension levels (drawn in blue) priced at $3508 and $3569, respectively.

What are the technical indicators currently showing?

The RSI is trading below the 50 handle which indicates that the bears are in control of the market momentum at this moment in time. The RSI is also pointing downward which indicates that the bearish market momentum may also be increasing.

For a sign that the bearish pressure is fading, we will look for the RSI to head back toward the 50 handle and eventually break above.

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