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.

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