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Technical analysis

BTCUSD Analysis: Bitcoin Price Might Drop Towards $4000 Level

Amandeep Sonewane | Nov. 23, 2018
BTCUSD Analysis: Bitcoin Price Might Drop Towards $4000 Level

November 23, 2018 AtoZ Markets  - Bitcoin price isn’t doing well and breaking crucial supports after every dip. The king of cryptocurrency has crashed repeatedly over the past several days and is now stands at $4,400 level. As per the data from coinmarketcap.com, Bitcoin price is trading near $4,400 level with the 24-hours volume of $2.06 Billion. At the time of press, the coin has a market cap of $76.3 Billion.

Bitcoin Technical Analysis

As per the yesterday's charts, there was a tiny upside correction above the $4,500 level in Bitcoin price against the USD. The price of the coin even breaks the $4,600 resistance zone and remained well below the $4,700 pivot area. Later, the price started to move downward and traded below the $4,500 and $4,400 support levels. It is currently trading well below the $4,500 level and the 100 hourly SMA.

The price also dropped below the 61.8% Fibonacci retracement level of the last wave from the $4,048 lows to $4,600 highs. the recent bearish momentum has opened the doors for more losses below the $4,250 support level. It seems like the price may soon test the last swing low at $4,048 level.

If the sellers gain traction, there are high chances of a downside break below the $4,000 handle in the near term. The next support is placed near the $3,900 level. Also, it coincides with the 1.236 Fibonacci retracement level of the last wave from the $4,048 low to $4,600 high. Below this, the price of the coin might perhaps decline towards the $3,800 level.

In conclusion, Bitcoin price is clearly under bearish pressure below $4,400 levels. If sellers remain in action in the short term, there might be a sharp decline below $4,000 handle.

  • RSI(14) is valued above 50 which signals "Sell" action in daily time-frame.
  • William%R – "Oversold" signal on the daily time-frame.
  • MACD(12,26) – "Sell" signal in daily charts.
  • ATR(14) – signals that Bitcoin is less volatile.

Bitcoin Pivot Points

Bitcoin price has a significant support near $4,250 levels and resistance near $4,600 levels.

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.