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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