Bitcoin price scored a high of around $347 earlier today, before dropping again to $328 at the time of writing of this article. $348.14 is a strong resistance level that is preventing further increase in price as we will explain throughout our analysis.
Strong Resistance on the 1 Hour Charts:
By examining the 1 hour (BTC/USD) charts from Bitfinex (take a look at the below chart); plotting the 20, 50 and 100 EMAs and executing the Bollinger bands, we can conclude the following:
- We can now draw a Fibonacci retracement between the high printed on the 4th of November ($503.24) and the low printed yesterday ($300.23). The price rose earlier today and almost touched the resistance at $348 which corresponds to the 23.6% Fibonacci retracement level.
- When the price approached the 23.6% Fib retracement level, it touched the upper Bollinger band, which explains why the price fell right away and shows how $348 is a strong resistance that is preventing further price rise.
- Price is now below the 20, 50 and 100 EMAs which reflects the current selling power of the market so it is not unlikely to see the price drop to test the $300 support level.
Bearish on the 1 Day Charts Too!
Let’s examine the 1 day (BTC/USD) chart from Bitfinex (look the below chart), plot the Bollinger bands and execute the MACD indicator; we can notice the following:
- Again on the 1 day charts, the price touched the upper Bollinger band when it approached the $348 resistance level, so this level is unlikely to be breached within the next 24 hours.
- The MACD indicator is also not in favor of a price rise, as although it is in the positive zone, the red negative trend line is above the positive blue trend line.
Conclusion:
Bitcoin price rose to print a high of $348 today, but our technical analysis is not in favor of another bullish wave that can push the price up again to test that resistance level, within the next 24 hours.
Charts from Bitfinex; hosted on Tradingview.com