Detailed Analysis of Bitcoin (BTCUSD)

Bitcoin – from highs to lows

Bitcoin hit all time highs around 19500 during December 2017. This was also the start of the Crypto sell-off – price has seen downside pressure since December 2017 to date. Could now be a good opportunity to buy bitcoin and re-invest in the once high return market? Are the days of continuous highs now over? Does bitcoin have a future?

Technical Analysis

Let’s have a detailed look at the charts and see what price action and indicators suggest…

The Weekly time-frame (above) shows the market price history of bitcoin from it’s beginnings to date. You can see the all-time highs during December 2017 and it’s steady decline since.

Price has moved below all key Fib levels, suggesting that the current downside pressure is not a correction or retrace move but that bitcoin has entered a bearish market. Bitcoin recently bounced off 100 SMA and the moving averages continue to be bullish and are widening, all signalling that price could start moving higher.

Buying opportunities may exist around the 100 SMA. If this breaks, buying opportunities may exist around the horizontal level at 3286 and 1100. A bullish move could be rejected or reverse around the horizontal levels at 6077 and 8190 and around the shorter-term moving average.

The daily time-frame (above) shows a clear down-trend – price action has formed a series of lower swing lows and lower swing highs and the moving averages are bearish and widening. There is nothing to suggest that the downside momentum is weakening.

If bitcoin can swing above the moving averages and the trend resistance area, price may reverse some of the recent downtrend and start up-trending.

Long opportunities could exist around the trend resistance (when it acts as support) and around bullish moving averages. A bullish move will face a lot of resistance – horizontal levels at 5775, 6110, 8353, 9694 and 11679.

The 4 hour time-frame (above) shows recent upside and a clear uptrend. The moving averages are bullish and steady – confirming the bullish momentum.

Opportunities to go long may exist around the trend support area, around the dynamic support of the moving averages and around the identified horizontal levels at 4053, 4006, 3896, 3781 and 3643. A bullish move could stall or reverse around the horizontal resistance levels at 4159 and 4326.

Fundamental Analysis

Well, what can we say?! Bitcoin remains one of the most controversial markets with strong opinions for and against it’s future. There are 3 things that are currently clear though…

  1. Demand for bitcoin and other crypto currencies is not increasing, hence the current stagnant markets
  2. Upcoming generations prefer software to hardware, i.e virtual currencies to traditional commodity currencies like GOLD. Most under 30’s would prefer bitcoins than GOLD. We could see demand for bitcoin grow in coming years.
  3. There is still no major need for bitcoin. Almost all people can live their life’s without the need to ever own a crypto currency, unlike traditional currencies. Until this changes, bitcoin will remain a speculators market.


Bitcoin continues to be a high-risk investment due to the amount of uncertainty about it’s future. The charts clearly showing buying opportunities though and bullish price action levels and support are being respected.

It is the best time to make a few plans for the long
run and it’s time to be happy. I’ve learn this put up and if I may I wish
to suggest you few fascinating things or suggestions. Maybe you could
write next articles referring to this article.
I want to read more issues about it!

Hi there, I found your web site by the use of Google at the same
time as looking for a similar subject, your site got here up, it looks great.
I have bookmarked it in my google bookmarks.

Hi there, simply was alert to your blog through Google, and located that it is
really informative. I’m gonna watch out for brussels.
I’ll appreciate for those who continue this in future. Many other people
will probably be benefited out of your writing. Cheers!

My developer is trying to persuade me to move to .net from PHP.
I have always disliked the idea because of the expenses.
But he’s tryiong none the less. I’ve been using WordPress
on several websites for about a year and am worried about switching
to another platform. I have heard excellent things about Is there a way I can transfer all my wordpress content into it?
Any help would be really appreciated!

Its like you read my mind! You seem to know a lot about this, like you wrote the book in it or
something. I think that you could do with some
pics to drive the message home a little bit, but instead of that, this is
fantastic blog. A fantastic read. I will definitely be back.

Have you ever thought about creating an e-book or guest authoring on other websites?

I have a blog based on the same ideas you discuss and would love to have you share
some stories/information. I know my subscribers would enjoy your work.
If you are even remotely interested, feel free to shoot me an e mail.

Thanks for some other informative site. Where else may I am getting that kind
of information written in such a perfect way? I have a venture that I’m just
now operating on, and I have been on the glance out for such information.

Nice post. I learn something totally new and challenging on blogs I stumbleupon on a daily basis.
It’s always exciting to read through content from other authors and practice something from other websites.

Admiring the hard work you put into your site and
detailed information you offer. It’s nice
to come across a blog every once in a while that isn’t the
same outdated rehashed information. Fantastic read! I’ve saved your site and I’m including your RSS feeds to my Google

You really make it seem really easy together with your presentation however
I find this matter to be really one thing which I believe I’d by no means understand.
It seems too complicated and extremely wide for
me. I’m looking forward for your subsequent post, I’ll try to get the hold
of it!


Leave a Reply

Your email address will not be published. Required fields are marked *