Bitcoin Price Analysis: Bitcoin Returns to Previous Range After Tether Caused Price Surge

Bitcoin Price Analysis: Bitcoin Returns to Previous Range After Tether Caused Price Surge

  • Bitcoin had experienced a surge in price over the past few days, largely attributed to the slip on the USD Tether peg.
  • The market has returned to its previous equilibrium level before the surge in price.
  • Support levels moving forward; $6558, $6453, $6261, $6189, $6032, $6000.
  • Resistance levels moving forward; $6639, $6715, $6824, $6862, $7053, $7300, $7431, $7606.. $7857, $8000.

Bitcoin has remained relatively stable over the past 24 hours of trading only moving a small -0.1%. The cryptocurrency king is currently trading at a price around $6583, at the time of writing, after seeing a +3.98% price hike over the past 7 trading days.

The number 1 reigning cryptocurrency in the industry currently holds a $113 billion market cap value and has seen a small -11.65% price decrease over the past 90 trading days, indicating that the bears have lost pace in their quest to push the market lower. Bitcoin is still trading at a price that is 66% lower than its all time high value.

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

Bitcoin price analysis

BTC/USD – SHORT TERM – 4HR CHART

https://www.tradingview.com/x/mJAKc8zt/

Analysing price action from the short termed perspective above, we can see that the market has had some significant movements since our last analysis. The episode of Tether slipping under its $1 peg caused Bitcoin to spike to a high of $7788 on the 15ht of October 2018. The market has since retraced back to its original value before the bull run, but this could be another sign that a major cryptocurrency bull run may be on the horizon.

The market has just recently slipped under the short term 1.272 Fibonacci Extension level (drawn in red) priced at $6715. It is now trading at support provided by the short term .382 Fibonacci Retracement level (drawn in green) priced at $6558. If the bears continue to push the market momentum lower we can expect immediate significant support below to be located at the .618 Fibonacci Retracement level (drawn in black) priced at $6453.

If the bears can penetrate further below the $6453 handle then we can expect more support below at the short term .786 Fibonacci Retracement level (drawn in green) priced at $6261 followed by the medium term .786 Fibonacci Retracement level (drawn in black) priced at $6189. The final level of support to highlight is the medium term .886 Fibonacci Retracement level priced at $6032.

Alternatively, if the bulls can regather momentum and push the market back above the resistance at $6639, we can expect immediate higher resistance to be located at the short term 1.272 and 1.618 FIbonacci Extension levels (drawn in red) priced at $6714 and $6862. Resistance above this level can then be expected at the medium term .236 Fibonacci Extension level priced at $7053.

If the bulls can continue to rally higher then more resistance above can then be found at the 1.272 and 1.414 Fibonacci Extension levels (drawn in purple) priced at $7431 and $7606, respectively. If the bulls continue with the acceleration higher then the final resistance levels to highlight are the 1.618 Fibonacci Extension level priced at $7857 and the psychological round number handle at $8000.

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Bitcoin Price Analysis: Bitcoin Returns to Previous Range After Tether Caused Price Surge
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Bitcoin Price Analysis: Bitcoin Returns to Previous Range After Tether Caused Price Surge
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Bitcoin has remained relatively stable over the past 24 hours of trading only moving a small -0.1%. The cryptocurrency king is currently trading at a price around $6583, at the time of writing, after seeing a +3.98% price hike over the past 7 trading days.
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COINGAPE
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Yaz Sheikh 39 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]