Author:
Since our recent BTC price analysis and for the past week, the coin had been trading around the $3800. The lower boundary lies at $3700 – $3750, while the upper edge lies at $3850 resistance.
As we already know, Bitcoin doesn’t like stability. Hence, we are expecting a major move to take place in the next 24 – 48 hours. This can be noted by the Bollinger Bands, which are at their tightest point for a long while.
The direction of the anticipated move we are expecting is still unknown. However, the momentum is in favor of the bears, as of now.
Total Market Cap: $129.8 Billion
BTC Dominance: 52.1%
Looking at the 1-day & 4-hour charts
– The formation of Bitcoin might seem like a bear flag. A breakdown, followed by decent sellers’ volume, could play out in the case of breaking $3750. The formation will get invalidated in case of breaking up the $3850 resistance mark.
– Support/Resistance: The bigger picture hasn’t changed much for the past week, as we can see that, besides the ascending trend-line (at current BTC level), the next significant support level is at the $3750 level (marked in orange).
Below is the $3700 support level (along with the daily chart’s 100 days moving average line, marked in white). Further support lies at the $3600 mark (along with the 1-day’s chart significant 50-days moving average, marked in purple) and the famous $3480 – $3500 support area.
From the bull side, resistance levels at $3850 (along with the 4-hour 50-MA), $3900 and $4050.
– The daily chart’s RSI level: The Stochastic RSI Oscillator is about to cross over at the oversold area (for the past three days). In case this plays out, we can expect a bullish move which could break-up the significant $3850 resistance.
– The daily trading volume: The volume is decreasing from day to day over the past week. This also supports the option of an anticipated major move.
– BitFinex open short positions: The shorts are between the 19K BTC area from above, to the 17K from below. This is a fragile and dangerous spot.
BTC/USD BitStamp 4-Hour chart
BTC/USD BitStamp 1-Day chart
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.