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Bitcoin Analysis: Price Might Break $3,500 Mark Before New Year

Bitcoin Analysis: Price Might Break $3,500 Mark Before New Year

December 28, 2018 AtoZ Markets  The cryptocurrency market seems to be suffering the bearish pull again after a week of bullish gains. Technical chart shows that Bitcoin and Ethereum have both recorded their trading volumes hit 7-month highs.

It recorded just before Christmas day, over a period from December 17 to December 23, Bitcoin’s trading volume reached $46 billion while at the same time Ethereum’s trading volume hit a peak of $18 billion.

At press time, the price of Bitcoin is $3,670 with a 24 hours volume of $275 Million. The coin has a market cap of $64 Billion, according to stats.

Bitcoin Technical Analysis

Looking at the charts, there was an increase in bearish pressure on Bitcoin price after it failed to clear the $3,850 level against the USD. The BTCUSD pair started a downside move and broke the $3,800 and $3,700 support levels. It even broke the $3,600 level and traded as low as $3,563 level. There could be a short term correction from $3,563 level, but the price of the coin is trading well below the 100 hourly SMA.

Moreover, an initial resistance is placed near the 23.6% Fibonacci retracement level of the last decline from the $3,855 highs to $3,563 lows. Yesterday’s highlighted major bearish trend line is intact with resistance at $3,720 on the hourly chart of the BTCUSD pair. Finally, 50% Fibonacci retracement level of the last decline from the $3,855 highs to $3,563 lows is near the trend line. Which means that if there is an upside correction, the price of the coin is likely to struggle near $3,780 and $3,800 levels.

A proper break above the trend line and the $3,800 resistance is needed for a decent upward rally. If not, Bitcoin coin might continue to decline and it may even break the $3,500 support in the near term.

To sum up, Bitcoin price seems to be trading with a bearish angle below $3,700 and there are chances of more decline.

Bitcoin Daily Pivot Points

Bitcoin price has a significant daily support near $3,616 level and resistance near $3,880 level.

Think we missed something? Let us know in the comments section below.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ, nor should they be attributed to AtoZMarkets.

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