Bitcoin price prediction: Correction or continuation next?

April 3, 2019, | AtoZ MarketsBitcoin 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

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