2018-12-4 17:24 |
Bitcoin had a bearish drop yesterday which brought the price down to around $3750. It has since retraced back up to near $4000 which has been an important point of trading over the past week.
The recent bearish conditions in the markets which brought the price of Bitcoin from $6400 to below $3500 was preceded by a period of prolonged consolidation. This consolidation was characterized by both lower highs and higher lows forming around $6500. For much of this time, traders were anticipating either a bullish or bearish breakout. The eventual breakout was extremely bearish but took longer to materialize than many expected.
We are seeing Bitcoin forming similar patterns in recent price action with both higher lows and lower highs forming. It is unlikely that price will consolidate for as long as the last consolidation, but $4000 seems to be an important area for Bitcoin price.
Market conditions are markedly more bullish than the recent past which was characterized by consecutive sharp declines. Buyer momentum has been increasing with both the MACD and RSI increasing. If the buyer momentum can materialize in a price increase from here, the next anticipated resistance will be $4600. If we see a return to bearish declines, the 2018 lows around $3500 would be anticipated to act as support.
Bitcoin Daily Chart – Source: Tradingview.com
Buyers are likely extremely cautious to push the price up after the recent bearish movements. Some analysts have also been releasing their bearish outlooks for the price of Bitcoin. Martin Weiss, the founder of Weiss ratings that provide analysis on the major cryptocurrencies, said the following about Bitcoin:
“Bitcoin has declined by more than 70% again, setting the stage for another major price rise likely to begin in 2019. However, there is one important difference this time: Bitcoin has not kept up with the latest advances in the Distributed Ledger Technology (DLT) that underlies cryptocurrencies.”
Key Takeaways: Bitcoin has returned to $4000 after a bearish drop yesterday. The continuous trading around this point has marked it as a significant level and possible point of consolidation. In the event of a rise, $4600 will be an important resistance level. In the event of a drop, the 2018 low at $3500 will be expected to act as support. A bearish statement released from found of Weiss Ratings. DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.Has Bitcoin [BTC] Price Reached a New Consolidation Point? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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