Bitcoin has seen another price decline totalling -3.23% over the past 24 hours of trading as price action dips back below the $4000 handle once again, causing panic amongst speculators who continue to wonder how low the bears can take the market.
- BTC/USD has dropped back below the $4000 handle once again.
- Critical support is located at $3672. If we break below we could be heading much further lower.
- Support moving forward; $3855, $3775, $3700, $3672, $3600, $3500, $3424.
- Resistance moving forward; $3965, $4000, $4084, $4179, $4331, $4500, $4747, $4900, $5000.
The cryptocurrency is presently exchanging hands at a price around $3884, at the time of writing, after suffering a considerably terrible month during November 2018 where BTC dropped by a staggering 39% over the past 30 trading days.
The number 1 ranked cryptocurrency now holds a total market cap size of $67.46 billion as the 67 month old godfather of cryptocurrency now trades at a value that is 80% lower than the all time high price.
Let us continue to analyse price action for BTC/USD over the short term and continue to highlight any areas of potential 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 the market has, once again, broken below the $4000 handle. We can see that the market had continued to drop further below more support at the downside 1.272 Fibonacci Extension level (drawn in brown) priced at $3956, to where it is currently trading at support provided by a very short term .786 FIbonacci Retracement level (drawn in green) priced at $3855.
This Fibonacci Retracement is measured from the short lived rebound when BTC/USD bounced from a low of $3684 on the 27th of November 2018 and rose to a high of $4488 2 days later on the 29th of November 2018.
Looking ahead, if the bearish pressure continues to cause BTC/USD to penetrate below the .786 Fibonacci Retracement support we can expect immediate significant support beneath to be initially located at the short term .886 Fibonacci Retracement level (drawn in green) priced at $3775. Further support located below this can then be expected at the previous long term downside 1.414 FIbonacci Extension level (drawn in brown) priced at $3672.
If the sellers continue to pressure the market below the support at $3672 then BTC/USD will be creating fresh yearly lows again until further support beneath can be found. Expected support can be located at the downside 1.618 Fibonacci Extension level (drawn in peach) priced at $3424.
Alternatively, in our bullish outline, if the buyers can begin to drive price action higher they will run into immediate resistance above located at the previous downside 1.272 FIbonacci Extension level (Drawn in brown) priced at $3956.
If the bulls can continue to progress above the $4000 resistance level we can then expect more resistance above to be located at the .5 and .382 Fibonacci Retracement levels (drawn in green) priced at $4084 and $4179 respectively.
The RSI is still trading underneath the 50 handle which indicates that the bears are still in control of the momentum. If we would like to see a recovery above $4000 we would need to see the RSI break back above the 50 handle.
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]