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 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.

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