December 18, 2018 AtoZ Markets – Bitcoin price after struggling recently against a massive sell-off and fears the great cryptocurrency experiment could be coming to an end. The bitcoin price has added some 10% over the last 24 hours, climbing to over $3,500, according to coinmarketcap stats.
Since the last year peak, the entire crypto market capitalization has dropped by more than 80 percent. The market value went from $592 Billion in December 2017 to about $109 billion this week. Still, the crypto market has grown rapidly since its inception 10 years ago and the $3,400 level is well above the fraction where Bitcoin first began trading.
Bitcoin Technical Analysis for Near Term
According to yesterday's technical analysis, we discussed that further gains seem likely above $3,400 level in Bitcoin price against the USD. The BTCUSD pair did move higher and broke the $3,355, $3,400 and $3,500 resistance levels. The price of the coin traded as high as $3,589 and it is currently well above the 100 hourly SMA. The current price action of Bitcoin indicates a short term downside correction towards $3,400 levels.
Moreover, the price of the coin is currently trading near the 23.6% Fibonacci retracement level of the recent leg from the $3,119 lows to $3,589 highs. There is a short term contracting triangle formed with support at $3,480 on the hourly chart of the BTCUSD pair. The pair may break the triangle support and decline towards the $3,400 support. However, there are chances of more declines towards the $3,355 daily support if $3,400 fails to hold.
The 50% Fibonacci retracement level of the recent leg from the $3,119 lows to $3,589 highs is also near $3,355 level. Therefore, dips from the current levels might perhaps find bids near $3,400 or $3,355 levels.
In conclusion, Bitcoin price is placed nicely in a positive zone above the $3,305 daily pivot level and the 100 SMA. On the upside, the $3,580 level is an initial resistance followed by $3,600 zone. The key barrier for a larger rally is near $4,000 level, above which sellers are likely to lose control.
Bitcoin Weekly Pivot Points
Bitcoin price has a significant weekly support near $3,080 level and resistance near $3,630 level.
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