Bitcoin Price Overview

Below is a review of how Bitcoin performed in December into the new year. We saw new highs towards the 19.5k price point, but then a major downtrend and correction coming into the new year. We are now seeing a rally back towards the 20k structure level, but plenty action to trade along the way for both bulls and bears.

Downtrend after Price hit $19.5k

Bitcoin had a significant downtrend starting on 12/17/17, after price hit a high at $19.5k, which acted as a signficant psychological level and structural resistance. The next major structural support was created at $16.7k, creating a possible bullish opportunities for buyers to take advantage of, however it broke the demand zone and continued the downward trend as seen below:

Structural Support @ $12,700

On 3 separate occasions price attempted to either break or test the $12,700 price point, with wicks going as far as $11,000. This created a very strong resistance area and demand zone and gave buyers the opportunity to buy right before the new year where the circle was drawn. Price gravitated towards the well defined downwards trend line, creating a possible reaction point for price to rally back towards to test the $16k structure which is a well defined resistance/supply zone.

Price Rallied back to $16.7k Resistance and Broke Structure

Upon breaking the downwards trend line, price started rallied and began gravitating upwards toward the $16.7k structure. In the midst of the rally, there was a small reaction point at the $14k price point where price previously concentrated at, giving buyers an opportunity on 01/04/18, as wicks began forming at the demand zone. Currently, we are seeing a small consolidation at the demand zone @ $16.7k, with the possibility of continuing the rally towards the 20k resistance area.

Overall, it is difficult to determine if we will see a continued rally or if price breaks the demand zone and continues to correct. We'll have to see how the candles react at the $17k price area.

Happy Trading!