Bitcoin has seen another price drop over the past 24 hours of trading totalling over -2.98%. The market is now trading at a price around $4027, at the time of writing, after seeing a 7-day period where price action saw a +3.46% increase in price following a disastrous month in November 2017.
- Bitcoin has dropped again today into support around $4000.
- The market is now trading in a range between $3956 and $4331.
- Support moving forward; $4000, $3956, $3672, $3424, $3263, $3154, $3000.
- Resistance moving forward; $4331, $4747, $5083, $5419, $5898, $6000.
Bitcoin remains ranked in number 1 position as it holds a $70.09 billion market cap. The market has dropped by over -36% over the past 30 days of trading as the 67 month old coin trades at a price that is -79% from the ATH price.
Let us continue to analyse price action for Bitcoin over the short term and continue to highlight some areas of support and resistance.
Bitcoin Price Analysis
BTC/USD – SHORT TERM – 4HR CHART
Analysing the market from the short term perspective above we can see that, since our last article, price action for BTC/USD had experienced a small price surge as the market rose to a high around $4488. However, the resistance around the bearish .236 Fibonacci Retracement level was too overpowering for the bulls causing price action to reverse and decline once again.
After rolling over the price proceeded to decline into short term support provided by the downside 1.272 Fibonacci Extension level (drawn in red) priced at $3956. We can see that this price level has supported the market during the end of November 2018 and has continued to do so far in December 2018.
We can also notice that price action is now trading within a very narrow range between the $4331 handle as the upper boundary of the range and the $3672 handle as the lower boundary of the range.
Moving forward, if the market continues to apply pressure to the lower boundary of the range we can expect price action to collapse below once again. In this scenario, we can expect immediate support below to be located at the $3800 handle followed by the short term downside 1.414 Fibonacci Extension level (drawn in red) priced at $3672. IF the market continues further lower we can then expect more support below to be located at the $3424 and $3263 handles.
Alternatively, in our bullish scenario, if the buyers begin to buy the market up at $4000 we can expect immediate resistance above to be located at the upper boundary of the trading range. If they can penetrate above $4331 we can expect immediate resistance above to then be located at the .382 and .5 Fibonacci Retracement levels (drawn in orange) priced at $4747 and $5083, respectively.
The RSI is trading well below the 50 handle to indicate that the bears are in control of the momentum within the market. However, the RSI has recently turned upward which may indicate that the bears have once again run out of steam. If the RSI can continue to rise above the 50 handle we can expect price action to stay above $4000.
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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]