- Bitcoin has managed to break back above teh $6400 handle today.
- The extended period of BTC remaining above $6000 may provide confidence to some of the bulls within the market.
- Support moving forward; $6390, $6319, $6218, $6189, $6032, $5858.
- Resistance moving forward; $6453, $6518, $6600, $6645, $6783, $6824, $7000, $7053, $7100, $7200, $7300, $7431, $7606.
Bitcoin has seen some positive price action over the past 24 hours of trading seeing a total hike around 1%, at the time of writing. BTC did travel higher but has since returned to where it is now trading around the $6400 handle.
The cryptocurrency king currently holds a total market cap value of around $3.78 billion after seeing a 90-day price decline totaling -8%. The 66-month-old coin is now trading at a value that is 67% lower than the all-time high price.
Let us continue to analyze price action a little closer over the short term and highlight any areas of potential support and resistance moving forward.
Bitcoin Price Analysis
BTC/USD – SHORT TERM – 4HR CHART
Analyzing the market from the shortly termed perspective above we can see that the market has rebounded from the recent solid support found at the short term downside 1.414 Fibonacci Extension level (drawn in red) priced at $6319. As the market approached this level of support, the buyers re-entered the market to prevent it from falling any further lower.
Price action is now trading marginally above the 1.272 Fibonacci Extension level (drawn in red) priced at $6390. Price action had surged to around $6450 today but has since retraced slightly off of this high.
Moving forward, in our bullish outline, if the buyers push the market higher they will encounter immediate resistance at the .618 Fibonacci Retracement level priced at $6453. If the bulls can continue to climb higher above this level they will encounter higher resistance at the $6518 handle followed by resistance at the .5 Fibonacci Retracement level priced at $6639.
If the bullish momentum can continue to carry the market further higher then resistance above this level can then be expected at the .382 Fibonacci Retracement level priced at $6824 followed by the .236 Fibonacci Retracement level priced at $7053.
Provided the bulls can then continue to climb above the $7100 handle, we can expect further higher resistance to be located at the 1.272 and 1.414 Fibonacci Extension levels (drawn in purple) priced at $7431 and $7606 respectively.
Alternatively, in our bearish outline, if the sellers pressure the market beneath support at $6390 then the buyers can expect further support below at the downside 1.414 and 1.618 Fibonacci Extension levels priced at $6319 and $6218 respectively.
Support located below this can be found at the .786 Fibonacci Retracement level priced at $6189 followed by the .886 Fibonacci Retracement level priced at $6032.
The market has been trading in a sideways manner for quite some time now. The BTC bulls can take away some confidence in the market because the price has managed to remain stable above $6000 which is quite an achievement considering the seriousness of the previous decline.
The RSI has just penetrated above the 50 handles on the 4HR chart to indicate that the bulls have recently taken over the momentum within the market. So long as the RSI can remain above the 50 handles we could see BTC climb its way back up toward $7000.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.