After assessing the market and the most recent trends, analysts of the international cryptocurrency trading platform PrimeXBT have offered a forecast: they expect the Bitcoin exchange rate to rise above $ 6,000 in the first quarter of 2019, despite the Q4 skid that saw the world’s premier digital asset hit low after low. Both technical and fundamental analysis confirm the theory.
Between May and November 2018, the bears made repeated attempts to break through the level of $6,000 (the exact range was $6,150 – $ 5,850), forming a global downward triangle. The triangle resistance line is represented by price highs of $9,865, $8,409 and $6,525, and the support line for six months was the 6,000 level. The descending triangle worked, breaking through the support on November 13th. Within a few days, the price dropped to 3,250–4,500.
The fact that the breakdown below the $6,000 mark took place exactly one year after the price rebounded from this price level, followed by a rally to $20,000, is quite interesting. Now, the $6,000 level will not be easy to surpass, as it is a very strong resistance mark in Bitcoin’s history.
The price level of $ 3,000 [range $ 3,250 – $ 2,850] is an equally important historical mark, which resisted the bulls until August $4,2017. It’s impossible to break $2,850 and even lower when it comes to Bitcoin’s value because of the strength of this price level and relative strength index [RSI indicator], which is below 20, a number that is considered a strong oversold zone and gives a signal to the traders to buy, thus maintaining the price.
As a result, Bitcoin is “sandwiched” between two powerful price levels in the green corridor, approximately until the end of the first quarter of 2019.