Bitcoin has continued to decline to slip underneath the $6400 handle once again. The market has seen a small -0.14% price decline over the past 24 hours of trading as Bitcoin currently trades at around $6337. Bitcoin has suffered a further -2.24% price decline over the past 7 trading days.
- Bitcoin has continued to fall further lower breaking below $6400.
- The market is now trapped within a tight range bound between $6319 and $6390.
- Support moving ahead; $6319, $6300, $6218, $6189, $6032, $5858.
- Resistance moving ahead; $6390, $6453, $6581, $6645, $6824, $7053, $7431.
The number 1 ranked cryptocurrency currently holds a total market cap value of $109 billion after seeing a turbulent 90 day period where price action drops by 13%. The 66-month-old cryptocurrency is now trading at a value that is 67% lower than its all-time high price.
Let us analyze price action for BTC/USD over the short term and continue to highlight any potential support and resistance moving forward.
Bitcoin Price Analysis
BTC/USD – SHORT TERM – DAILY CHART
Analyzing the market from the short term perspective above, we can see that price action has slipped below our identified support at the .618 Fibonacci Retracement level priced at $6543.
We can see that after breaking below this support the market continued to drop further lower, breaking below the downside 1.272 Fibonacci Extension level (drawn in red) priced at $6390, until finding more support at a short-term downside 1.414 Fibonacci Extension level (drawn in red) priced at $6319. We can see that as the market approached this area the decline started to fade allowing the bulls to defend the level of support.
Price action is now trapped between a very narrow range between the 1.272 and 1.414 Fibonacci Extension levels priced at $6390 and $6319 respectively.
Moving forward, if the bears continue to pressure price action below the lower boundary of the trading range they will encounter initial support at the round number handle of $6300. If the bears continue to pressure the market even further lower then more support beneath can be expected at the 1.618 Fibonacci Extension level (drawn in red) priced at $6218.
If the bears continue to push the market even further lower then more support below is expected at the short term .786 and .886 Fibonacci Retracement levels (drawn in black) priced at $6189 and $6032 respectively.
Alternatively, if the bulls can regather momentum to push the market action above the upper boundary of the narrow range they will meet immediate higher resistance at the .618 Fibonacci Retracement level priced at $6453. Further resistance above this can then be expected at the .5 and .382 Fibonacci Retracement levels priced at $6639 and $6924 respectively.
If the bulls can continue to climb above the .236 Fibonacci Retracement level (drawn in black) priced at the $7053 handle, then further higher resistance can be located at the 1.272 Fibonacci Extension level priced at $7431.
The RSI (not charted) is printing an extremely favorable reading toward the bears, on the 4HR chart, as the market trades in oversold conditions. If we would like to see a recovery, we would need to see the RSI head back toward the 50 handles and eventually break up above it.
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. Reach out to him at [email protected]