Bitcoin Price Analysis: BTC/USD Consolidates Within A $1,000 Range, Price Under Pressure


Bitcoin Price Analysis–Dec 3

Latest Bitcoin News

The community is on overdrive thanks to a single post that Satoshi Nakamoto made on PGP Foundation befriending one Wagner Tamanaha, a Brazilian with Japanese descent. Of course, it would be very exciting if the real identity of the mysterious Bitcoin founder is known and whether the 1 million BTCs he owns will hit exchanges but sleuths are as usual skeptical about this “activity”.

Many are even dismissive of the idea that Satoshi is even alive in the first place with crypto. Blockchain commentators continue to insist that two prime candidates–Harold Thomas Finney II and Dave Kleiman—both coders and experts in cryptography, may have been Satoshi but unfortunately, both are dead. So, whether Satoshi is alive or this PGP account was hacked depends on whether he shall make a comeback at the BitcoinTalk forum and perhaps comment a thing or two about Bitcoin and his thoughts on scalability.

Meanwhile, it appears as if bears are slowing down and though it is unlikely that BTC will print $15,000 as predicted by Tom Lee or $250,000 according to John McAfee, we might see modest moves towards $8,500 mostly because of SEC involvement in the space and the entry of institutional level investors desirous of a business-like habitat free of market manipulation, fraud and informational asymmetry.

BTC/USD Price Analysis

Weekly Chart

From the charts, BTC is the fourth-best performer after BCH SV, ADA, and Litecoin adding seven percent in the last week. Even though candlestick arrangement points to strong sellers thanks to the week ending Nov 25 full bear bar closing below $5,800—the lower limit of our resistance—previous support zone, the mere fact that prices are down +80 percent from 2017 peaks is against Fibonacci retracement rules.

As such, we expect BTC/USD prices to steady above $4,000 aware that any dips below $3,700 could see declines—mostly from panic sells towards $3,000 as mentioned in previous BTC/USD trade plans. Ideally, before we recommend longs, conservative traders must see gains above $5,800 at the back of strong volumes exceeding week ending Nov 25 as a double bar bull reversal pattern print.

Daily Chart

As it is, BTC/USD is stuck in a $1,000 consolidation mode with clear supports and resistance—bull trigger at $3,700 and $4,700. Now, as long as BTC is oscillating within this range, then we shall retain a bearish outlook.

However, for bulls to recover and edge higher we expect to see strong gains above $4,700 confirming bulls of Nov 25 and 28 as a morning star pattern is confirmed.

When that happens then as before, we expect bulls to thrust prices above $5,000, $5,500 and later $6,000 as bulls rally erasing Nov 2018 losses and kick-starting a trip back to $15,000 or higher.

All Charts Courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.