Bitcoin is going through massive pain areas as compared to the other cryptos, as it has been affected the most in this bearish time frame. We have given here the technical analysis for the long-term scenario and short-term scenario, with all of its possibilities. The price is volatile enough to move in any direction- up, down or sideways.
Bitcoin USD Live chart states that currently, Bitcoin is trading at $3550.28 with a market capitalization of $62,477,511,147 and circulating supply of 17,429,512 BTC.
First, let us represent the long-term monthly time frame chart of Bitcoin live ticker- XBT/USD (BitMex) as per Bitcoin stock price, which covers both resistance and support levels with Bitcoin candlestick charts as well.
If the Monthly candle (December) closes with price above $3430 with decent buy volume then we might see the price the testing the "Resistance Zone 2" ranging from $4207-$4700 within few weeks.
Few other factors in confluence with the bullish scenario:
1) Stochastic RSI is in the Oversold Region (its a region where asset price is likely to rebound or bounce).
2) Selling Volume (red bars at the bottom of the chart) is declining i.e. sellers are getting exhausted.
If the Monthly candle (December) closes with the price below $3430 with decent buy volume then we might see the price, the testing, the "Support (Buying) Zone 1" ranging from $2400-$2900 within few weeks.
If that support doesn't hold (no buying interest) then we might see "Support (Buying) Zone 2" followed by last "Support Zone 3".
Support Zone 3 ranging from $1100-$1300 is the High of the previous Bull market cycle (2013) and might get a retest to follow market cycle rule (not mandatory but likely).
One of the scenarios which people often ignore is that an asset ranges between two boundary zones for some weeks and months before moving into strong trends (Upward or Downward) just like Bitcoin did between price levels $5800-$6400 for 3 months (September-November'18) before making a major move downtrend to $3100 price level.
There are permutations and combinations you can apply between different zones (Resistance and Support) on the chart to form Ranging Zones.
These are areas where major market participants (Institutional Investors) accumulate before a big change in direction of the price.
Note: Monthly time frame charts illustrates the movement of price over a long-term horizon and are most often used by long-term investors.
Let's take both the bullish and bearish scenario for the short-term time frame.
If BTC close above $3650 Daily and the weekly frame shows a reversal pattern (Green Engulfing candle) we might enter at these levels ($3600) with a target around $4000+ which eventually might restest Resistance Zone ($4400-$5400) in the coming weeks.
If BTC couldn’t break the previous support ($3600) turned resistance in the coming weeks then there are two Bounce(rebound) zone for Bullish reversal ranging from $1800-$2400 and $896-$1200 for coming weeks and month.
While bull and bear markets are nothing new in the financial world and Bitcoin has been through the bear cycle before and recovered well from it with given time. Bitcoin is here to stay, it’s worth exploring the drops in value and equally fast recovery the currency has experienced. History shows that the top cryptocurrency has sustained much more rapid losses during a shorter period of time over the course of the past several years, and has not discouraged long-term investors.
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Note: The above references are for information and educational purposes only. It is not intended to be a piece of investment advice.
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2018-11-21 08:49:47.000001 | 2 min