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Bitcoin price prediction: Correction or continuation next?

Amandeep Sonewane | Apr. 3, 2019
Bitcoin price prediction: Correction or continuation next?

April 3, 2019, | AtoZ Markets - Bitcoin price surged over 23% since the last week of trading, reaching as high as $5,100 on Tuesday, followed by a widespread altcoin rally. Bitcoin is currently trading at $4,963 at time of press, according to data taken from CoinMarketCap

Since the last week, Bitcoin gained a total volume of over $ 1.74 Billion. The highest price of the coin, $ 5,104.42, was on Tuesday, 02 April 2019 at 08:00 GMT, while the lowest price, $ 4,000.75, was on Wednesday, 27 March 2019 at 11:00 GMT. 

Bitcoin price prediction

Looking at yesterday's technical charts, there was the start of a strong hike in bitcoin price above the $4,000 pivot level against the USD. The BTCUSD pair rallied significantly above the $4,500 and $4,700 resistances. Bulls gained control and they even succeeded in clearing the $5,000 resistance. The price of the coin is up more than 25% from lows and it recently traded towards the $5,100 mark. A new 2019 high was formed near $5,104.42 and the price recently started consolidating gains.

Moreover, there was a correction below the $5,000 level and the 23.6% Fibonacci retracement level of the recent wave from the $4,665 lows to $5,105 highs. However, losses were supported by the $4,900 level. After that, the price of the coin tested the 50% Fibonacci retracement level of the recent wave from the $4,665 lows to $5,104.5 highs. It is currently trading well above the $4,650 support area and the 100 hourly SMA.

Technical indicators:

  • The relative strength index(14) value is above 80 – BTCUSD pair gets "Overbought" in daily timeframe.
  • The CCI(14) valued at 348 which signify “Overbought” signal.
  • The STOCHRSI(14) – Overbought in the daily timeframe.
  • Moreover, according to ATR(14), the BTCUSD pair is highly volatile.

In conclusion, the price of the bitcoin clearly moved into a strong uptrend above $4,500 and $4,650. However, considering the RSI(14), CCI(14) and STOCHRSI(14) indicator, bitcoin price gets overbought, thus, it is more likely that the sellers might book some profits and further push the prices below $4,700 zone. It might be difficult for the Bitcoin price to breach $5,270 resistance level at this point of time considering the higher volatility and overbought levels. The next target for the bitcoin price in the upcoming days could be $4,600- 4,700 level.

BTCUSD Pivot Points

As per the daily bitcoin pivot points table, Bitcoin holds strong support at $ 4,384 level and resistance near $ 5,270 level. 

NameS3S2S1Pivot PointsR1R2R3
Classic3495.13842.44384.84732.15274.55621.86164.2
Fibonacci3842.44182.34392.24732.150725281.95621.8
Camarilla4682.447644845.54732.15008.75090.25171.8
Woodie's3592.53891.14482.24780.85371.95670.56261.6

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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.