Bitcoin has seen another -2.62% price decline over the past 24 hour trading period. The cryptocurrency is now exchanging hands at a price around $3472, at the time of writing, after suffering a further -7.55% price fall over the previous 7 day trading period.
- Bitcoin has found some stability over the past few days at the $3424 handle.
- The market is now trading in a short-term range between $3424 and $3672.
- Support moving forward; $3424, $3263, $3154, $3000, $2988, $2819.
- Resistance moving forward; $3672, $3956, $4200, $4501, $4884.
The number 1 ranked cryptocurrency currently retains a market cap value of $59.50 billion after undergoing a substantial price drop through November 2018 where price action dropped by a total of -46% over the past 30 trading days.
The 68-month-old cryptocurrency is now trading at a value that is 82% lower than its all-time high price.
Let us continue to take a look at BTC/USD over the short term and highlight any important areas of support and resistance moving forward.
Bitcoin Price Analysis
Analyzing the market from the short term perspective above we can see that price action has found a relative level of support at a short-term downside 1.618 Fibonacci Extension level (drawn in peach) priced at $3424. This price level has helped to stall the market decline as the bulls continue to defend the area aggressively.
Over the past 4 days, the market has now been trading in a range between the support at $3424 as the lower boundary and the previous downside long term 1.414 Fibonacci Extension level (drawn in maroon) priced at $3672 as the upper boundary of the range.
Moving forward, if the sellers push the market below the lower boundary of the range we can expect further initial support beneath to be located at the long-term downside 1.618 FIbonacci Extension level (drawn in red) priced at $3263. Further support below this can then be found at a short-term downside 1.618 Fibonacci Extension level (drawn in purple) priced at $3154.
If the selling pressure continues to drop the market even further below the psychological support provided at $3000 we can then expect more support beneath to be located at the downside 1.272 and 1.414 Fibonacci Extension levels (drawn in green) priced at $2988 and $2819, respectively.
On the other hand, if the buyers manage to push price action above the upper boundary of the range at $3672, we can expect immediate resistance above to be located at the previous downside 1.272 Fibonacci Extension level (drawn in maroon) priced at $3956.
If the buyers can then continue to climb further higher above the $4000 handle we can then expect higher resistance to then be located at the bearish .382 Fibonacci Retracement level (drawn in orange) priced at $4501.
The RSI has been oscillating above and below the 50 handle which indicates that neither the bulls nor the bears can grab a hold of the market momentum. If we would like to see a recovery in Bitcoin we would need to see the RSI climb back above the 50 handle and stay above.
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