Bitcoin has seen some form of relief in a period of consolidation over the past 6-days as a very short term symmetrical triangle is starting to form. However, with financial markets continuing to collapse around the world, we can only assume that Bitcoin will continue to drop even further lower as it continues to trade like a “risk-on” asset.
Nevertheless, the cryptocurrency managed to find strong support at $4,800 and if it can remain above here we might see the kingpin of cryptocurrencies start to recover slowly over the next few weeks. However, if it drops beneath here, things could get ugly and we might see a drop toward $3,900 or lower.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Taking a look at the daily chart above, we can see that Bitcoin found very strong support at the $4,800 level. It did slip further lower to spike toward $3,900, however, the buyers managed to bring the price back higher as it closed above $4,800.
We can see the very short term period of consolidation being highlighted by the green triangle.
Short term prediction: BEARISH
Although we are in consolidation, it is still difficult to call Bitcoin neutral. It is more likely that Bitcoin will break beneath this triangle and head lower over the next few days if global financial markets continue to drop.
Toward the downside, we can expect the first level of support at $5,000. Beneath this, support is located at $4,800. If the sellers continue beneath here, support is located at $4,577, $4,139, $3,969, $3,912 (downside 1.272 Fib Extension), and $3,436 (downside 1.414 Fib Extension).
On the other side, resistance lies at $5,600, $5,911, $6,000, and $6,542.
Key Levels
Support: $5,000, $4,800, $4,672, $4,577, $4,139, $4,000, $3,912, $3,500, $3,436..
Resistance: $5,600, $5,911, $6,000, $6,500, $7,000, $7,200, $7,500, $7,600, $8,000, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.
