Bitcoin has seen a sharp rebound totalling +7.64% over the past 24 hours of trading. The cryptocurrency is currently trading at a price around $4100, at the time of writing, after suffering a steep -9.98% price drop over the past 7 trading days.
- Bitcoin breaks back above $4000 in small recovery.
- The market had found strong support at the $3672 handle before rebounding.
- Support moving forward; $3956, $3672, $3424, $3263, $3154, $3000.
- Resistance moving forward; $4200, $4331, $4747. $5083, $5419, $5898, $6000, $6183.
Bitcoin remains the number 1 ranked cryptocurrency as it retains a market cap value totalling $70.54 billion. The 67 month old cryptocurrency is now trading at a price that is -79% lower than its all time high value after suffering a precipitous price decline totalling -37% over the past 30 trading days.
Let us continue to analyse price action for BTC over the short term and highlight any potential areas of support and resistance moving forward.
Bitcoin Price Analysis
BTC/USD – SHORT TERM – 4HR CHART
Analysing BTC/USD from the 4HR chart above, we can see that the market has been consistently falling ever since breaking below the long term $6000 support handle on November 14th 2018.
The market has found some form of solid support recently provided by the downside 1.414 FIbonacci Extension level (drawn in red) priced at $3672, mentioned in our previous BTC/USD article. Price action had recently double bottomed at this level which has caused a small price rebound to push price action back over the $4000 handle once again.
Moving forward, if the bulls continue with their recently established rebound we can expect immediate resistance above to be located at the bearish .236 and .382 Fibonacci Retracement levels (drawn in orange) priced at $4331 and $4747 respectively.
If the buyers continue to drive price action further higher we can expect further resistance above to be located at the bearish .5 and .618 Fibonacci Retracement levels (drawn in orange) priced at $5083 and $5419, respectively.
If the bullish momentum can continue to then travel higher, significant resistance will be met at the $6000 handle as this had provided long term support (now turned resistance) for the market during 2018.
On the other hand, if the sellers re-enter the market and begin to push price action lower we can expect immediate support beneath to be located at the downside 1.272 Fibonacci Extension level (drawn in red) priced at $3956. If the bears continue to drive BTC/USD even further lower then more support below can be located at the downside 1.414 Fibonacci Extension level (drawn in red) priced at $3672 followed by the short term downside 1.618 Fibonacci Extension level (drawn in pink) priced at $3424.
The RSI within the market has recently broken above the 50 handle within the 4HR time frame. This shows that the bulls are starting to take control of the market momentum. If the RSI can continue to travel higher we can expect BTC/USD to continue to regain some of the recent losses seen during November 2018.