Bitcoin has remained relatively stable over the past 24 hours of trading printing just a small +0.09% price move. The market is now trading around $6489, at the time of writing, after seeing a further 7-day price hike totaling +1.66%.
- Bitcoin is trading at the support provided by the .5 Fibonacci Retracement level
- The market still needs to break above $6840 before being able to test $7000.
- Support moving forward; $6470, $6383, $6319, $6259, $6218, $6185.
- Resistance moving forward; $6518, $6557, $6645, $6665, $6840, $6945, $7027, $7146.
The number 1 ranked cryptocurrency now holds a total market cap value of $111 billion after suffering a small -2.25% price decline over the past 30 trading days.
The 66-month-old coin is now trading at a value that is -67% from the all-time high price.
Let us continue to analyze price action over the short term and highlight some areas of potential support and resistance moving forward.
Bitcoin Price Analysis
Looking at the market from the chart above we can see that price action is still trapped within the previous trading range when the market started at a low of $6100 on the 19th of September 2018 and extended to a high of $6840 on the 22nd of September 2018. This was a price increase totaling 12% from low to high.
We can see that after placing the high price action had rolled over to find support at the .786 Fibonacci Retracement level priced at $6259 during October 2018. We can also see that on the 15th of October 2018 the market had spiked to a high of $7788. This was due to the Tether currency fluctuating away from its $1.00 stable price.
Price action is now trading at the support provided by the .5 Fibonacci Retracement level priced at $6470. Moving forward, if the bulls continue to press price action higher we can expect further higher resistance to be located at $6518 followed by the .382 Fibonacci Retracement level priced at $6557.
If the bulls can then continue to drive price action higher they will encounter further resistance higher at the .236 Fibonacci Retracement level priced at $6665 followed by the September high priced at $6840.
If the buyers continue to climb up above $6840 we can expect higher resistance to be located at the 1.272 and 1.414 Fibonacci Extension levels (drawn in light blue) priced at $6945 and $7027 respectively.
Alternatively, in our bearish scenario, if the sellers re-enter the market and push price action lower we can expect immediate support below to be located at the .618 Fibonacci Retracement level priced at $6383 followed by the downside 1.414 Fibonacci Extension level (drawn in red) priced at $6319.
If the sellers continue to push price action further lower more support below can be expected at the .786 and .886 Fibonacci Retracement levels priced at $6259 and $6185 respectively.
The RSI has recently battled its way above the 50 handles indicating that the bulls are starting to take control of the momentum within the market. So long as the RSI can continue to trade above the 50 handles we can expect price cation to travel further higher.