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Technical analysis

BTCUSD Forecast: Bitcoin Price Might Drop Below $3,600 Level

Amandeep Sonewane | Dec. 27, 2018
BTCUSD Forecast: Bitcoin Price Might Drop Below $3,600 Level

December 27, 2018 AtoZ Markets  - Bitcoin price underwent an impressive bullish correction after falling almost 85% from its all-time high near $20,000 level. The price of the coin at the beginning of December established an temporary bottom level at $3,127 before jumping towards its monthly high near $4,237 mark. At press time, the coin is trading near $3,800 level with a 24 hours volume of $253 million.

Since last week, the price of Bitcoin has moved by $ -241.91 (-6.01%) with a total volume of over $ 2.69 Billion. The highest price, $ 4,303.37 , was on 24 December 2018 at 07:00 GMT while the lowest price, $ 3,734.85, was on Tuesday, 25 December 2018 at 17:00 GMT.

Bitcoin Technical Analysis

Looking at the charts, the past few hours were mostly bearish for Bitcoin price below the $3,840 resistance against the USD. The BTCUSD pair started an upside correction after trading as low as $3,669 level. The price of the coin moved above the $3,700 and $3,740 levels and there was even a break above the 23.6% Fibonacci retracement level of the recent drop from the $4,250 highs to $3,669 lows. However, the upside move was capped by the $3,950 and $4,000 resistances.

Moreover, there is a major bearish trend line in place with resistance at $3,800 level on the hourly chart of the BTCUSD pair. The pair needs to break the trend line and the $3,900 resistance to gain traction. The next resistance is placed near the $3,960 level. It also represents the 50% Fibonacci retracement level of the recent drop from the $4,250 highs to $3,669 lows. An intermediate resistance is near the $3,900 level and the 100 hourly SMA.

In conclusion, Bitcoin price might continue to move downwards if there is no break above $3,900 handle. On the downside, a break below the $3,650 and $3,600 support levels could accelerate more losses. The next key support is at $3,500, which might act as a decent buy zone.

Bitcoin Daily Pivot Points

Bitcoin price has a significant daily support near $3,830 level and resistance near $4,000 level.

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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.