Bitcoin Sees Short Term Consolidation Will We Break Above Or Head To $3,900?
- Bitcoin has been trading in a period of consolidation for the past 6-days of trading.
- The cryptocurrency dropped by a total of 50% from the March highs as it finds support at $4,800.
Bitcoin has seen some form of relief in a period of consolidation over the past 6-days as a very short term symmetrical triangle is starting to form. However, with financial markets continuing to collapse around the world, we can only assume that Bitcoin will continue to drop even further lower as it continues to trade like a “risk-on” asset.
Nevertheless, the cryptocurrency managed to find strong support at $4,800 and if it can remain above here we might see the kingpin of cryptocurrencies start to recover slowly over the next few weeks. However, if it drops beneath here, things could get ugly and we might see a drop toward $3,900 or lower.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Taking a look at the daily chart above, we can see that Bitcoin found very strong support at the $4,800 level. It did slip further lower to spike toward $3,900, however, the buyers managed to bring the price back higher as it closed above $4,800.
We can see the very short term period of consolidation being highlighted by the green triangle.
Short term prediction: BEARISH
Although we are in consolidation, it is still difficult to call Bitcoin neutral. It is more likely that Bitcoin will break beneath this triangle and head lower over the next few days if global financial markets continue to drop.
Toward the downside, we can expect the first level of support at $5,000. Beneath this, support is located at $4,800. If the sellers continue beneath here, support is located at $4,577, $4,139, $3,969, $3,912 (downside 1.272 Fib Extension), and $3,436 (downside 1.414 Fib Extension).
On the other side, resistance lies at $5,600, $5,911, $6,000, and $6,542.
Key Levels
Support: $5,000, $4,800, $4,672, $4,577, $4,139, $4,000, $3,912, $3,500, $3,436..
Resistance: $5,600, $5,911, $6,000, $6,500, $7,000, $7,200, $7,500, $7,600, $8,000, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
