Bitcoin (BTC) waited until the final month of the year to hit its 2018 bottom, and the beginning of 2019 looks to offer little relief.
After reaching $3,140 on Dec 15, BTC had a rapid recovery leading up to Christmas Eve when the price was able to top $4,200.
Between Christmas and today Bitcoin has gone back and forth with little power from both bears and bulls. Bitcoin would need to close strong over $4,300 to show a signal of another move to the upside, but is unlikely to happen with such low volume.
Currently, Bitcoin is trading at $3,810 on the Coinbase exchange, while its total market cap is $67.6 billion.
Stochastic Relative Strength Index
Taking a look at the stochastic relative strength index (RSI), Bitcoin has been on the move upward after dropping to almost 0.
At the time of writing, BTC is crossing back into the mid-range at a value of 25. Taking into consideration the heavy descending resistance (pink), Bitcoin could have some trouble getting back between the 40 and 50 levels this time around.
An Unhappy New Years?
Looking at the four-hour BTC chart shows the price moving into a wedge formation (green lines) in the final half of December.
Since Bitcoin failed at breaking the $4,300 support and resistance level set at the end of November, a test of new lows could be in store to kick off the new year.
If BTC closes below the horizontal support at $3,680, the next target to the downside would be a double-bottom at $3,180.
Below that, Bitcoin would most likely head back between the psychological support in the range of $3,000 and $2,500. Levels this low could possibly lead to a panic sell-off and provide opportunities for investors to enter at some extremely profitable positions.
Traders and those looking to accumulate are advised to carefully set buy targets around the supports or use a dollar cost averaging strategy to mitigate the risk and losses if a panic sell does end up happening.
Do you think Bitcoin has already bottomed? Will BTC fall below $3000 in 2019? Let us know your thoughts in the comments below!
Images courtesy of TradingView.
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does hold BTC.