The top three cryptocurrencies as shown on coinmarketcap.com closed bullish within the last three weeks of December 2018. This quickly raised bullish sentiment across various social media platforms as most headlines made reference to the $4000.00 round number support of Bitcoin price.
We on the other hand have been on a lookout for bearish signals indicating a continuation of the downward trend. Join us this week as we take analyze the technical and fundamental indicators driving the price of the top three digital coins.
BTCUSD (Bitcoin) Technical and Fundamentals
Bitcoins’ general trend direction is currently on the monthly time frame as the price continue to hover below the bearish accumulation resistance of 4265.00, after an approximate 50.0% price decline from a double bearish accumulation on October last year. A price close above the most recent resistance level of 4265.00 from the monthly chart will signal a highly probable change in direction of the trend from bearish to bullish.
These are considered as two important events which are set for the same date 16th January 2019. First is the world’s most exclusive investor conference on anything blockchain and cryptocurrencies, and the second being the long awaited Cboe XBT Expiration date.
We look forward to an increase in volatility as we also monitor the technical price patterns that may give clues towards how speculators interpret the outcome of these events.
BTCUSD: Daily Chart
Last week, we mentioned an anticipated bearish hidden divergence from the daily time frame, and since then we’ve been on a look out for bearish setups that will support this move. Well, we finally got a trigger.
A bearish accumulation pattern triggered on January 8 ’19 gets the ball rolling for a price plummet of about 12.5% and setting up a resistance level at 4107.40. At the point of writing, the dead cross of MACD confirms the bearish divergence and we look at further price decline towards 3134.15 support level.
BTCUSD: 4-HR Char
A 4-hour perspective of the price chart shows more timely entry towards a short selling trend from a breakdown of bullish accumulation on January 9 ’19, 12:00. This pattern confirms the bearish accumulation pattern on the daily chart, and consequently resulting in a tighter stop loss short selling trade resulting in a profit of about 12.11% compared to a 3.0% risk.
Bitcoin (BTC): Critical Levels
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