Bitcoin has seen a small 0.49% price decline over the past 24 hours of trading. The cryptocurrency giant is currently exchanging hands at a price of $6343 after seeing a small 0.64% price increase over the past 7 trading days.
What’s been going on?
Price action for BTC/USD continues to trade within the large consolidation pattern we have been following for the past few months. As the Bitcoin hash rate doubles, investors are still worried about the large Bitcoin wallet that has recently come to life after a number of years.
Where is Bitcoin currently ranked?
Bitcoin still holds its number one position in terms of overall market cap rankings across the entire industry. It has a total market cap value of $109 billion after the 65-month-old cryptocurrency sees a small 4.73% price decline over the past 90 trading days. Bitcoin is currently trading at a price that is 67% lower than its all time high price.
Let us continue to analyse price action for Bitcoin over the short term and update our expected support and resistance areas.
BTC/USD – SHORT TERM – DAILY CHART
A brief catch up
In our last analysis for BTC/USD, we had outlined that the Bitcoin market had hit a reversal point as it met resistance at the long term downward sloping trend line. We stated that if the market continued to head lower we would expect our final support at the .886 Fibonacci Retracement level priced at $6129.
So what actually happened?
Analysing price action from the short term perspective above, we can see that price action did indeed roll over and reverse at the upper boundary of the trading triangle. Price action continued to fall until finding a level of significant support at the .886 Fibonacci Retracement level priced at $6129 as expected.
Where are we now?
We can see that after hitting the support at the $6129 handle, price action proceeded to rally until it met support at the long term .786 Fibonacci Retracement level priced at $6622. This level has been a pivotal level for price action over the past few months and will require significant momentum for the market to overcome once again.
After meeting resistance at the $6622 handle the market rolled over and is now trading at resistance highlighted at the short term .786 Fibonacci Retracement level priced at $6398.
Where we can go from here?
If the bullish pressure can continue within the Bitcoin market and push price action above the resistance at $6398, we expect immediate further significant resistance higher to be located at the long term .786 Fibonacci Retracement level priced at $6622.
If price action can continue even higher, further resistance can be expected at the short term .618 Fibonacci Retracement level priced at $6848 followed by the previous downside 1.272 Fibonacci Extension level priced at $6915. This area of resistance is bolstered by the 100 day moving average which currently hovers close within this area.
If the bullish price action can continue higher then the last level of significant resistance to highlight will be the upper boundary of the technical triangle that has been in play for a number of months.
What if the bears regain control within the Bitcoin market?
Any bearish pressure is initially expected to be absorbed by the short term .886 Fibonacci Retracement level priced at $6129. If price action does indeed penetrate below the support at $6129 then immediate significant support below is expected at the psychological round number handle at $6000.
If price action penetrates below $6000 then support can be expected at the $5858 handle followed by the lower boundary of the technical triangle pattern around the $5790 area.
What are the technical indicators reading?
The technical indicators within the market are largely favouring the bears at this current moment in time. The RSI is trading below the 50 handle indicating that the bearish pressure is still in control of the momentum. If we would like to see some gains within this market we would need to see the RSI break above the 50 handle.