Analysis Technical

Bitcoin Price Watch: BTC Dips Remain Supported Above $3,860

Aayush Jindal | January 8, 2019 | 7:00 am
technical analysis bitcoin
Analysis

Bitcoin Price Watch: BTC Dips Remain Supported Above $3,860

Aayush Jindal | January 8, 2019 | 7:00 am
  • Bitcoin price started a downside correction after trading above $4,080 against the US Dollar.
  • There is a major bullish trend line formed with support at $3,940 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is likely to find bids near $3,940 and $3,900 for a fresh upward move in the near term.

Bitcoin price corrected lower below $4,000 against the US Dollar. BTC is now trading above the $3,940 and $3,900 support levels and it could bounce back.

Bitcoin Price Analysis

Yesterday, we saw a nice upward move above $4,000 in bitcoin price against the US Dollar. The BTC/USD pair gained bullish momentum and traded towards the $4,100 level. A new weekly high was formed at $4,084 and later the price started a downside correction. It moved below the $4,000 and $3,980 support levels. Moreover, there was a break below the 23.6% Fib retracement level of the recent upside from the $3,759 low to $4,084 high.

The price traded close to the $3,900 level and tested the $3,920 support. There was no complete test of the 50% Fib retracement level of the recent upside from the $3,759 low to $4,084 high. At the outset, the price is consolidating above the $3,950 level. On the downside, the main support is near $3,950. There is also a major bullish trend line formed with support at $3,940 on the hourly chart of the BTC/USD pair. Below the trend line, the next key support is near the $3,920 level. On the upside, there is a connecting bearish trend line with resistance at $4,000 on the same chart. Therefore, the price could make the next move either above $4,000 or below $3,920 in the near term.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price seems to be preparing for the next move either above $4,000 or below $3,920. Above $4,000, BTC could test the $4,080 and $4,100 resistance levels.

Technical indicators

Hourly MACD – The MACD for BTC/USD is now placed in the bearish zone, indicating a negative bias.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level, with a bearish angle.

Major Support Level – $3,940

Major Resistance Level – $4,000

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