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Bitcoin's recent forays into price territory above $ 4,000 have been beaten back on the holiday, putting the bulls under pressure to regain momentum.
The cryptocurrency had peaked to around $ 4,140 on Dec. 21, then to over $ 4,200 on Dec. 24, but dropped sharply back to around $ 3,720 early yesterday. A small bullish bounce since it's now subsided and, at press time, bitcoin is changing hands at $ 3,762, as for CoinDesk date.
The world's largest cryptocurrency by market capitalization now seems to be consolidating under a lower low, potentially building momentum for another push above $ 4,000
Daily chart
Support for an average amount of money at 3.75, bitcoin looks weakened, having fallen victim to an early holiday sell-off.
In our previous article, we discuss a possible visitation to resistance (R2 on chart) at $ 4,400, based on the measured Fibonacci extension taken on the daily chart. Bitcoin barely peaked out at $ 4,236 (R1), however, before it was rejected as seen since Dec. 20, resulting in the formation of the temporary support.
Currently, it would appear to be that bitcoin does not have the capacity to climb higher (1-hour chart, 30-min chart).
They have struggled hard to win. $ 4,200 or risk conceding the short-term up-trend.
2-hour chart
The bears will now be hoped to force prices down the temporary support line.
The 2-hour volume bars are varied as a price. If so, another move down is most likely.
View
- Short-term sell-off showed bitcoin's temporary support at $ 3.75 with a small bullish bounce triggered from that zone.
- Bitcoin was rejected from around $ 4,200 on Dec. 24/25, signalling bullish exhaustion.
- A drop below $ 3,650 would dash short / mid-term bullish hopes heading into the new year.
disclosure: The author holds no cryptocurrency assets at the time of writing.
Bitcoin image via Shutterstock; charts by Trading View
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