Bitcoin rose above the $57,000, or 1%, Friday morning New York time, recouping some of the losses suffered the previous day following Canada’s endorsement of Fidelity Bitcoin ETF. At the time of writing, BTC is up +0.5% recently, now trading at $56,273 up 4.9% over the past 24 hours. Although the crypto market continues to face headwinds from investor concerns over Omicron, Bitcoin (BTC) has the potential to fully metamorphose into a reliable haven. The volatility in the market favors short-term trading profits as the long-term trend remains positive. Since the pullback from its Nov. 10 all-time high of $69,000 touched the $54,000 support region on Nov. 26, BTC has relied on this low. Amid the corrective bounce, the BTC/USD pair has remained on the defensive toward the $60,000 psychological zone. However, traders and investors continue to book profit within the $60,000 to $53,000 range. On December 2, the Canadian financial regulators launched a spot investment-focused Fidelity Advantage Bitcoin ETF (FBTC), marking a significant first for the continent of North America.
Key Levels
Resistance Levels: $65,000, $63,000, $60,000
Support Levels: $53,000, $50,000, $47,000
BTC/USD Daily ChartBitcoin has posted slight gains on Friday and the BTC/USD has been in calm waters all week, as the pair has not veered much from the $57,000 level. BTC has been charging upwards since October, recently posting a new record high at 69,000. Although the no.1 crypto plunged after its rally ceased, it has adopted a more sideways pattern in the last few sessions, yet the moving average (MA 200) remains relevant at $46,500.
The near-term picture seems price is continuing in a range beneath the moving average (MA5). This imminent neutral bias is also reinforced by the Relative Strength Index (RSI) while flatlining under its 50-neutral mark. $60,000 is the first line of resistance, followed by resistance at $63,000. There is support at $53,000, which will come under pressure if BTC/USD continues to lose ground.
BTC/USD 4-Hour ChartBTC/USD is capped by the descending moving average (MA 200) on the 4-hour chart at $60,400, which may hinder price action if a bounce occurs, questioning the ranging signals coming from the Relative Strength Index (RSI). A downside reversal might not be ruled out given the persisting negative momentum in the oscillators.
Therefore, if the $60,000 resistance stands firm, the price could drift lower to encounter its recent low of $53,327 before tumbling towards the $50,000 support zone. Looking at the big picture, the decline below $60,000 has re-shaped the market structure from bullish to neutral. A drop below $53,000 could further worsen this outlook.
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