Bitcoin price is consolidating today, following the sharp rise of more than 5% yesterday, when price climbed to 5,641 USD, which is the highest value since November 2018. Currently, the cryptocurrency is in correction, falling by 2.2% for the day to 5,482 USD. Bitcoin bears fail miserably in stopping the huge institutional demand for crypto. The bulls dominate the market and raised the price of the cryptocurrency by more than 35% since the beginning of the month.
Bitcoin could fall back to $5,000 in the next few days, as Litecoin – which guided markets higher in the first quarter – is showing signs of weakness. Litecoin itself is into the red today, wiping out 6.8% to 73.01 USD.
Both Litecoin and Bitcoin pretty much moved in tandem from mid-December to the end of January. The crypto market leader, Bitcoin, picked up a bid near 3,100 USD on December 15 and jumped to highs above 4,200 USD on December 24. Further, Bitcoin charted a bullish higher low near 3,300 USD in the first week of February, confirming seller exhaustion.
Litecoin also bottomed out at 22 USD in mid-December, but charted a bullish higher low near 29 USD on January 22 – two weeks before Bitcoin did the same. Subsequently, the Litecoin broke into a bull market with a head-and-shoulders bullish reversal with a 30% gain on February 8.
Other cryptos are also in a correction. Ethereum and XRP are falling by 5.4% and 6.7%, while the decline in Bitcoin Cash and EOS is even more significant – 8.0% and 8.5%.
The total value of the cryptocurrency market fell to 177.495 billion USD.
Bitcoin price analysis
Yesterday, we saw a robust rise of the Bitcoin over the 5,400 USD and 5,500 USD resistance.
The cryptocurrency even broke the 5,600 USD level and settled above the 100-hour simple moving average (SMA). The price was traded at a new peak for 2019 at 5,641 USD. Later, there was a downward correction. Bitcoin broke the 5,600 USD and 23.6% Fibo retracement rate of the last wave from 5,361 USD to 5,641 USD.
However, the price found strong support close to 5,500 USD. The 50% Fibo retracement rate of the last wave from 5,361 USD to 5,641 USD also acted as support.
Additionally, there is a key ascending model of continuation with a resistance of nearly 5,595 USD. If there is a break above the triangle and 5,600 USD, the price is likely to repeat the test at 5,640 USD. The current price action is positive and it seems that the price may even rise above 5,650 USD. The next bull stop could be 5,700 USD or 5,720 USD. On the uptrend, the key resistance will be 6,000 USD and 6,160 USD.
On the downside, the initial support is close to 5,520 USD. If there is a break below the triangle, the price can test support at 5,460 USD. It represents the 61.8% Fibo retracement rate of the last wave from 5,361 USD to 5,641 USD.
Bitcoin’s price is traded with a strong bullish trend above 5,460 USD and 5,500 USD. There are great chances to break above the 5,650 USD. This will most likely open the jump door to the level of 5,800 USD or 6,000 USD. Conversely, closing below 5,400 USD may reverse the current bullish trend, at least temporarily.
Cripto market faces strong resistance despite the Bitcoin’s bullish movements.
Bitcoin Cash suffers another drop from the 300 USD. The cryptocurrency fell below the 295 USD and 290 USD support levels. It is currently trading close to 273 USD. If the downtrend continues, we may see more losses to 270 USD. The next key downward support is close to the 270 USD level where buyers are likely to emerge. On the upside, the price has to jump above the 295 USD level to start a new move above the 300 USD level.
Binance Coin failed to reach a new peak and recently adjusted lower below support levels of 24.00 USD and 23.50 USD. The price even broke the 23.00 USD support and seems to remain at the 20.00 USD support level in the next sessions. On the upside, the previous support close to 23.50 USD now can act as a resistance.
Tron’s price dropped sharply after it peaked at 0.0250 USD. The price of TRX even broke the support level at 0.0245 USD and recently tested 0.0240 USD. If there is a new refund, the price may be facing a strong barrier close to the level of 0.0245 USD.
The EOS price dropped most significantly today, sliding below 5.20 USD. The price even tested 5.10 USD and fell below the 5.00 USD support area. On the upside, the main resistance is close to 5.20 USD and 5.25 USD.