Bitcoin price analysis: Consolidating for now; will declines continue?
- Bitcoin has been consolidating in a range with the downside capped at $3,500.
- “Bitcoin Satoshi Vision (BSV) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s…”
After Bitcoin price was rejected from trading marginally below $4,250, it has been consolidating in a range with the downside capped at $3,500 and the upside limit being the 50% Fibonacci retracement level taken between the last high at $4,767.41 and the lows of $3,146.82. Moreover, BTC/USD is still correcting lower at the time of writing the last day of the first week of January 2019.
Elsewhere in the market, the developers behind Bitcoin SV (BSV), one of the chains that split from the original Bitcoin Cash (BCH) protocol, Craig Wright and Calvin Ayre have reignited the war with Bitcoin (BTC). The two claim that Bitcoin SV is the only ‘true’ version of Bitcoin as envisioned by Satoshi himself.
“Bitcoin Satoshi Vision (BSV) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BSV is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.”
Meanwhile, Bitcoin price is currently dancing with the 38.2% Fib retracement level at $3,777. A weak bullish trend is forming at this level. However, the technical indicators in the chart show that the bullish move is likely to reverse into declines in the short-term. The price is also facing immediate resistance from the 50-day Simple Moving Average, which coincides with the 50% Fib level. Marginally above this level, the 100-day SMA will limit gains. The next hurdle at the 50% Fib level is a breakout position and if broken, will open the way for a correction towards and beyond $4,000.
In the meantime, the trendline support will continue to offer support and if BTC buyers keep the price above it, we will see a slow but steady move to the north. The first significant support is at $3,500 and the 2017 low around $3,146 is positioned to provide stronger support.
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Cryptocurrency market update: Expect cryptos to bottom out in 2019 before a bull-run kicks off- says VC
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Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
