Bitcoin Price Analysis: Bitcoin Drops Below $4000 for the first time since September 2017

SHORT TERM - 4HR CHART
https://www.tradingview.com/x/3XH2xHu7/

Bitcoin Price Analysis: Bitcoin Drops Below $4000 for the first time since September 2017

Bitcoin has seen a further 10% price decline over the past 24 hours of trading. The cryptocurrency has now broken below $4000 creating a 14 month fresh low as it currently trades around $3900 at the time of writing. Bitcoin has seen a dangerously precipitous price decline totalling 70% over the past 30 trading days.

  • Bitcoin continues to tumble as price drop below $4000.
  • Strong support below at $3263.
  • Support moving forward; $3672, $3424, $3263, $3154, $3000.
  • Resistance moving forward; $3956, $4000, $4200, $4500, $4800, $5000.

The number 1 ranked cryptocurrency currently holds a total market cap value worth $67.25 billion after slipping below the $100 billion mark this week for the first time in over a year and a half.

The 67 month old project is now trading at a value that is 80% lower than the all time high price.

Let us continue to analyse price action a over the short term and continue to highlight any potential areas of support and resistance.

 

Bitcoin Price Analysis

BTC/USD – SHORT TERM – 4HR CHART

SHORT TERM - 4HR CHART
Chart Source by TradingView

Analysing the market from the short term chart above, we can see that after breaking below the long term support at $6000, the cryptocurrency has continued to slide over the week breaking firstly below $5000 and now, recently, below $4000.

We can see that in todays price action the market had found support a downside medium termed 1.414 Fibonacci Extension level (drawn in maroon) priced at $3672. As BTC/USD reached this support level we can see that the market rebounded as it attempts to make a recovery back to $4000. However, judging from the selling pressure at hand it can be assumed that the $3672 handle will not hold.

The market is now trading at resistance provided by the downside 1.272 Fibonacci Extension level (drawn in red) priced at $3956. If price action fails to break above this resistance level and the market continues to head lower we can expect immediate support beneath to be located at the $3672 handle. Further support below this can then be located at the short term downside 1.618 Fibonacci Extension level (drawn in red) priced at $3424.

If the sellers continue to drive the market further below the $3424 support level we can expect further support below to then be located at the medium termed downside 1.618 Fibonacci Extension level (drawn in maroon) priced at $3263 followed by the shorter termed downside 1.618 Fibonacci Extension level (drawn in purple) priced at $3154. Support below this can then be located at the $3000 handle.

Alternatively, in our bullish scenario, if the buyers can drive price action above the resistance at $3956 and back above the $4000 handle, we can expect further resistance above to be located at $4200 followed $4500/$4600.

Further resistance above this will then be expected at the $4800 handle followed by the psychological resistance at $5000.

The RSI is trading in bearish territory on the 4HR charts. However, the RSI is rising which could be a sign that, on the short term basis, the bears within the market are losing their momentum. This may give the bulls an opportunity to regain control and start a recovery if the RSI can penetrate above the 50 handle on the 4HR chart.

Summary
Bitcoin Price Analysis: Bitcoin Drops Below $4000 for the first time since September 2017
Article Name
Bitcoin Price Analysis: Bitcoin Drops Below $4000 for the first time since September 2017
Description
Bitcoin has seen a further 10% price decline over the past 24 hours of trading. The cryptocurrency has now broken below $4000 creating a 14 month fresh low as it currently trades around $3900 at the time of writing.
Author
Publisher Name
Coingape
Publisher Logo
Show Comments
Yaz Sheikh 50 Articles

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]