Bitcoin Price Analysis Jan.3: BTC Is Facing a Tough Long-Term Resistance (MA-50)

Over the past two days since our last update, we can carefully say that 2019 is doing well to the cryptocurrencies: Led by Ethereum, most of the altcoins saw nice gains, while Bitcoin is (again) on the upper side of the $3700 – $3850 remarkable range.

Bitcoin broke up all the three moving average lines – 50, 100 and 200 days (4-hour chart) in its way to mark $3918 as the current daily high.

Looking at the 1-day & 4-hour charts

On the following 4-hour chart we can see the decent breakout of the descending trend-line around $3710 (marked in orange).
However, Stochastic RSI oscillator (4-hour) has crossed over at the overbought area. For the next hours, Bitcoin might visit lower support levels, maybe to gain power for a possible future mini-rally.
Support areas might be $3800 (strong support along with the ascending line, MA-100, and MA-50), $3700 (along with MA-200 – marked in green) and $3600 (prior low).
From the bull side, $3950 is the prior high from a week ago. This level shouldn’t be easy for Bitcoin to bypass since it’s where lies the 50 days moving average line from the daily chart (marked in white on the 1-day following chart).
In case that $3950 breaks up, the next resistance area is $4050 – $4200. As a reminder, there is still a possibility for a bullish formation of an inverse Head and Shoulders pattern (with targets around $5000 in case of a breakout above $4200).
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 slightly increased to 32.8K BTC.