Home Cryptocurrency Bitcoin Bitcoin price climbed back to 3,600 USD

Bitcoin price climbed back to 3,600 USD

Bitcoin price climbed back to 3,600 USD amid returning of the bulls on the market.

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Bitcoin price climbed back to 3,600 USD amid returning of the bulls on the market. It still appears to be consolidating rather than indicating a clear move either up or down but today it is more volatile.

Bitcoin price encountered a rollercoaster ride yesterday where it initially slumped below 3,500 USD and refreshed the lows in 2019. However, the bulls woke up just in time to pull the largest crypto above 3,500 USD, climbing even above the support level of 3,600 USD. Currently, the cryptocurrency is trading at 3,608.38 USD, representing an increase of about 1%.

bitcoin trade

The current consolidation period may also end in a downside move reinforcing the already bearish trend represented by the descending 10-week moving average already indicated by a 10 percent drop on January 10.

Bitcoin technical analysis

Below the current price, the Bitcoin is supported by a vast number of strong technical indicators clustered around 3,550 USD handle. They include 23.6% Fibo retracement daily and 38.2% Fibo retracement weekly, Bollinger Band 1-hour Lower, 38.2% Fibo retracement Monthly, Bollinger Band 4-hour Middle, Bollinger Band 15-min Lower and a set of SMA levels.

Once is area is cleared, psychological 3,500 USD will come into focus. However, the previous week low at 3,480 USD is considered to be a stronger hurdle. It is strengthened by 61.8% Fibo retracement Daily and Pivot Point 1-month Support 1.

A sustainable move below will open up the way towards interim support at 3,400 USD (Bollinger Band 1-day Lower and 23.6% Fibo retracement Monthly), and to 3,126 USD, which is the lowest level of 2018.

On the upside, the immediate recovery is limited by a confluence of technical levels, including, Bollinger Band 1-hour Middle, Bollinger Band 1-hour Upper, Bollinger Band 15 min Lower, SMA200 1-hour, SMA50 4-hour, and SMA100 1-hour. This resistance area spreads from the current price up to 3,600 USD. This level is vital for further Bitcoin recovery. Only a sustainable move higher will unleash the bullish potential and push the price towards the next target at 3,700 USD with SMA100 4-hour and SMA50 daily located on approach.

The future of Bitcoin

In a publication, the CEO of Nasdaq, Adena Friedman, said that Bitcoin and cryptocurrencies are innovations that deserve to become part of the global economy.

“The invention itself is a huge demonstration of genius and creativity and deserves the opportunity to find a sustainable future in our economy.
We would say that two key ingredients for establishing a practical benefit and a more stable value are governance and regulatory clarity – both are opposed to the original objective of a decentralized, manageable global currency”, wrote Adena Friedman.

She adds that Nasdaq contributes by supporting the future of emerging technologies. She believes that responsible regulation is key.

“However, when exchanged, the transparency and fairness are the keys to trust, and without any level of supervision and regulation, it is not possible to demonstrate a level of transparency and fairness that will build trust”, said Adena Friedman. “At Nasdaq, we are working to help cryptocurrencies to gain investor confidence by offering our technology for trade coincidence, clearing and trading integrity at start-up exchanges. We also invested in ErisX, an institutional market for crypto spot and futures. This year will have another development for cryptocurrencies. We believe that digital currencies will play a role in the future. The extent of their impact will depend on the development of regulation and broader institutional acceptance”, added she.

Freedman argues that the future of cryptocurrencies is not solved and has two potential developments.
1) Either innovation finds practical utility, followed by years of stable and sustainable trade progress and integration into the economic fabric (such as the Internet); or
2) The invention will fail to achieve widespread dissemination and its commercial applications as a means of exchange will be limited.

Ethereum technical analysis

Recently, Ethereum settled below the 114 support USD. The cryptocurrency fell below 112 USD and tested support of 110-111 USD. However, buyers have protected this area, and later the price has returned sharply.

The cryptocurrency was trading above the resistance levels of 112 USD, 114 USD, and 116 USD. There was a breakthrough over the 50% Fibo retracement from the last drop from 124 USD to 111 USD.

More importantly, the following key trend this week was offset by 118 USD on the couple’s hourly chart. It has risen above the 118 USD level and is currently consolidating profits.

Additionally, the 100-hour simple moving average (SMA) acts as resistance near the area of 119-120 USD. The 61.8% Fibo retracement from the recent drop from 124 USD to 111 USD is also close to 119 USD. Therefore, an adequate break above resistance levels of 119 USD, 120 USD and 122 USD may raise the price even more.

The next major drag is 125 USD, where sellers can emerge.

The price of the Ethereum apparently returned from the 110-111 USD maintenance area. However, the asset should surpass resistance levels of 119 USD, 120 USD and 122 USD to stay in a positive area. If not, the price is likely to lose the last profits and will go back to the 114 USD support level.