The BTC/USD bulls are having a tough time surging after the recent price downfall. The bears took control of this market once the price hit 7687.18. Most of the professional investors made a decent profit by shorting this pair at that level based on the bearish price action signal. In the longer time frame, the pair is now trading in a horizontal channel. But considering the medium term market trend, the pair is currently testing minor trend line support level at 3905.82. Any bullish price action confirmation signal at the current price level will be an excellent opportunity to execute fresh long orders.
Figure: BTC/USD testing major minor trend line support level at 3905.82
From the above figure, you can clearly see the bulls are trying to regain control of this market near the critical trend line support level. If the bulls manage to take control of this market from this level, the pair will eventually head towards the next critical resistance level at 4243.13. This level is going to offer a significant amount of selling pressure to this pair and any bearish price action confirmation signal will be an excellent opportunity to execute short orders.
On the downside, we need to break below the minor trend line support level at 3905.82. A daily closing of the price below that critical support level will eventually lead this pair towards the key support level at 3214.12. According to Anthony Khamsei, the CEO of Resistance.io, the price of cryptocurrency is most likely to find heavy buying demand near the low of 14th December 2018 due to the ongoing expansion of cryptocurrency use in the global market. So buying the deep with bullish price action confirmation signal will be an excellent profit taking the opportunity for the long term traders.
Fundamental Factors
The recent performance of the U.S economy is showing a great sign of recovery and most of the optimistic investors are expecting an imminent rate hike from the FED officials. If the FED hike their interest rate based on their currency economic performance, we will see a strong boost in the U.S dollar index which will eventually create an extreme level of selling pressure to BTC/USD pair. However, any dovish statement from FED chairman Jerome Powell will definitely refuel the BTC/USD bulls. So traders are advised to stay tuned with the FED rate hike decision to save their investment in the global market.