Analysis Technical

Bitcoin (BTC) Bulls Take Back Seat, $4,850 Holds The Key

Aayush Jindal | April 12, 2019 | 6:30 am
technical analysis bitcoin
Analysis

Bitcoin (BTC) Bulls Take Back Seat, $4,850 Holds The Key

Aayush Jindal | April 12, 2019 | 6:30 am
  • Bitcoin price started a major downward move after it failed to stay above $5,150 against the US Dollar.
  • The price declined below the $5,080 and $5,000 support levels to enter a short term bearish trend.
  • There is a key declining channel in place with resistance at $5,040 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could decline further towards the main support near $4,850, where bulls could take a stand.

Bitcoin price failed to hold the key $5,220 and $5,150 supports against the US Dollar. BTC even dipped below $5,000 and it may continue to slide towards the key $4,850 support area.

Bitcoin Price Analysis

Recently, there was a bearish reaction below the $5,350 support in bitcoin price against the US Dollar. The BTC/USD pair started a major downward move after sellers managed to push the price below the $5,220 and $5,150 support levels. It opened the doors for more losses, with a close below $5,150 and the 100 hourly simple moving average. The price even broke the $5,000 support area and traded close to the $4,920 support area.

A swing low was formed at $4,922 and the price is currently consolidating losses. It tested the 23.6% Fib retracement level of the recent drop from the $5,463 high to $4,922 low. There is also a key declining channel in place with resistance at $5,040 on the hourly chart of the BTC/USD pair. The pair could spike above the $5,040 and $5,050 levels. However, upsides are likely to be contained near the $5,080 and $5,100 levels. The main resistance is near the $5,150 level, above which bitcoin price could test the 50% Fib retracement level of the recent drop from the $5,463 high to $4,922 low.

The current price action is suggesting more losses below the $4,920 support level. The next main support is at $4,850, which was a resistance earlier. Bulls are likely to take a stand near $4,850. If they fail to protect $4,850, the price could test the $4,720 support.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly struggled in the past two sessions and settled below the $5,150 support. In the short term, there could be an upside correction, but upsides are likely to be capped near $5,080 or $5,100. Therefore, there are chances of another downside push below $4,920 before bulls appear near the $4,850 support area.

Technical indicators:

Hourly MACD – The MACD is showing negative signs in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD recovered recently from 30 and it is currently near the 40 level.

Major Support Levels – $4,920 followed by $4,850.

Major Resistance Levels – $5,040, $5,080 and $5,150.

Tags: ,    

NewsBTC is a news service that covers bitcoin news, technical analysis & forecasts for bitcoin and other altcoins. Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. We cover news related to bitcoin exchanges, bitcoin mining and price forecasts for various virtual currencies.

Casinos

Choose from the top online casinos
in UK and enjoy the fun!

Read More  ›

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.