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
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.