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Technical analysis

Bitcoin Forecast: Price Might Correct Towards $3,700 Support

Amandeep Sonewane | Dec. 20, 2018
Bitcoin Forecast: Price Might Correct Towards $3,700 Support

December 20, 2018 AtoZ Markets  - Bitcoin’s price is showing the bullish trend after a huge correction since the last few weeks. The price of the coin is pushing to two-week highs above the psychological hurdle of $4,000. The cryptocurrency rose to a high of $4,117.34, according to coinmarketcap.com stats. Its market cap also hit a two-week high of $70 Billion.

At press time, the world’s largest cryptocurrency by market capitalization was trading at $4,087 level, up 7.93% with a 24-hours volume of $ 636.50 Million.

Bitcoin Price Forecast for Near Term

Yesterday, we have discussed the chances of a bullish move towards $4,000 in Bitcoin price against the USD. The BTCUSD pair did move higher and broke the $3,750, $3,800 and $3,900 resistance levels. However, there was no complete test of the $4,000 resistance and a high was formed at $3,922. Later on, there was a downside correction and the price of the coin declined below $3,900 and $3,800 levels. There was also a break below the 23.6% Fibonacci retracement level of the recent wave from the $3,442 swing low to $4,117.34 high.

Looking at the charts, the decline was protected by the $3,650 level. Besides, the 50% Fibonacci retracement level of the recent wave from the $3,442 low to $3,117.34 high is also protecting losses. More importantly, there is a short term contracting triangle formed with support at $3,680 level on the hourly chart of the BTCUSD pair. Therefore, it seems like the price of thee coin is approaching the next break either above $4,265 levels. If there is a downside break, Bitcoin's price might extend correction towards the key $3,580 support zone. On the other hand, a break above $4,152 and $4,200 might start a fresh upward move.

In conclusion, Bitcoin price could extend the current correction towards $3,700 level, which is a major support. As long as there is no break below $3,586, the price of the coin is likely to climb higher again.

Bitcoin Daily Pivot Points

Bitcoin price has a significant daily support near $3,700 level and resistance near $3,981 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 Markets.com, nor should they be attributed to AtoZMarkets.