Last month – December 2018 – closed bearish and maintains a bearish outlook going forward into the New Year 2019. Join us as we take a look at the critical support & resistance levels, and price action patterns that are major technical drivers of the price of Bitcoin.
BTCUSD Technical Analysis
The double bearish accumulation pattern at the closing price of the month of October 2018, triggered a huge sell pressure for the BTCUSD resulting in a 50% price decline. The closing price of the last month in 2018, triggered a bearish accumulation pattern establishing a resistance level at 4282.85. Failure of price close above this resistance level indicates bearish presence. A bullish price close above this level on the other hand will indicate an increase in demand for Bitcoin and a probable comeback of the bulls.
Similar to the monthly chart, the weekly chart also displayed a bearish accumulation pattern on November 5 2018, leading to approximately 49% price drop. Towards late December 2018, a bullish engulfing pattern was signaled, highlighting bullish pressure. Upon the opening price of January, there is no clear sign of the direction of the BTCUSD pair, though there is weak indication of bullish presence.
From the above daily chart illustration, we notice a buildup of the bullish engulfing pattern from the view of a bullish accumulation pattern on December 16 ’18. From this bullish price action pattern, the price of the BTCUSD sharply grew by 30% and slowly plateaued into a range bound market upon completion of the move. The hidden bearish accumulation pattern and hidden bullish accumulation patterns observed in the range left the price trading between a resistance and support level of 4101.32 and 3774.11 respectively.
Bearish accumulation pattern triggered on December 21 ’18 04:00, and dead cross of the MACD oscillator, triggered a bearish regular divergence pattern on December 24 ’18 as shown on above. This resulted in a 9.5% price decline. As mentioned on the daily chart perspective, price continued to oscillate in a series of alternating resistance and support levels triggered by bullish accumulation patterns for longs and breakdown of bullish accumulation patterns for shorts.
Most recent on the chart is the breakout of bearish accumulation on January 1 2019 20:00.
We turn to the 2hour chart for short term entry and exit signals. The double bullish accumulation pattern triggered on December 28 ’18 at 10:00 resulted in an upward 7.8% burst in price. A subsequent formation of triple bullish accumulation patterns could not stand the test of time as they collapsed to a bearish price close on December 299’18 10:00. Bullish accumulation and breakout of bearish accumulation patterns on December 30, 31, and January 1 2019 established a strong bullish support level at 3778.70 and 3770.67.
These last price action patterns were triggered in combination with a bullish hidden divergence pattern, signaling future higher lows and possible higher highs.
Read more: January 2019 Fundamental Analysis of TRON
Conclusion and Projection for BTCUSD
Bitcoin price currently sits on a previous resistance now turned support level formed by a double bullish accumulation on June 2017. Price breakout above December 2018 bearish accumulation resistance will confirm a switch from bearish to bullish trend direction. For now, we anticipate a bearish hidden divergence pattern on the daily chart, as it will support the bearish sentiment of the bearish accumulation pattern on the monthly chart.
For more Technical Analysis read: Bitcoin Technical Analysis May 2019