Bitcoin Price Analysis Jan.1: New Year, New Hopes for BTC

Since our previous BTC price analysis from two days ago, Bitcoin had created two lower highs around the support-turned resistance levels at $3850 and $3800.

From there, Bitcoin had a significant drop to a new 2-day low at $3630, breaking down the mid-term ascending line (marked in orange on the 4-hour chart). As can be seen on the chart, Bitcoin broke down a triangle formation, very close to its apex.

Over the past hours, Bitcoin is slowly recovering and currently re-testing the ascending trend-line from below, now as a resistance, along with the $3700 support-turned resistance level.

As the new year of 2019 starts, Bitcoin hopes for a better one than the bearish 2018 which was a terrible year for the crypto coin.

Looking at the 1-day & 4-hour charts

As mentioned above, Bitcoin is now facing a tough resistance area including the 200 days moving average line (marked in light green), along with ascending trend-line and the $3700 resistance level.
If Bitcoin succeeds to break up, then the next resistance would be the descending trend-line around $3750, before facing $3800 resistance, along with 50 days moving average line (marked in purple). Behind lies the $3850 and $3950 resistance levels.
From the bear side, support in range lies at the prior low $3630, $3600, $3480 and $3400.
The mid-term inverse head and shoulders bullish pattern is still alive for the next days. However, it will become invalid in case Bitcoin breaks below ~$3500. The formation will play out if Bitcoin breaks up the neckline around $4150 in the next days.
Stochastic RSI oscillator (4-hour) has crossed over at the oversold area. For the next hours, Bitcoin might visit higher resistance levels.
The trading volume is still very low. This is likely because of the new year holidays.
There was not much change in BitFinex’s open short positions, which had decreased to 32K BTC.