As the year draws to a close, Bitcoin and the broader crypto markets have experienced another tumultuous period. After its recent plunge of Dec. 4, BTC recovered from $42,333 to mark a medium-term high of $51,995 from where it continues to trade sideways into the present week. In the prior day, the lead crypto jumped from around $47,800 to more than $49,000 after the Fed decision came out dovish. Although the crypto markets as a whole, remain driven by the sentiment and market movements of Bitcoin, US inflation data continues to determine investors’ sentiment towards Bitcoin as a store of value and a shield against dollar inflation. Despite its difficult start to the week BTC/USD remains cautiously higher past $47k support. At the time of analysis, BTC/USD is currently trading flat around $48,000, past the daily moving average (MA 200). Federal Reserve Chairman Jerome Powell speaking at a press conference said that he doesn’t view cryptocurrencies as a “financial stability concern.” He declares his supports for stablecoins to be issued by insured banks.
Key Levels
Resistance Levels: $55,000, $53,000, $50,000
Support Levels: $47,000, $45,000, $43,000
BTC/USD Daily ChartBitcoin had a difficult start to the week and is currently trading sideways as it seeks support above $47,000. BTC prices remain in consolidation and haven’t progressed since its plunge to $42,333 Dec. 4 low. Although it has settled above the moving average (MA 200) and the upper end of its recent range which may be encouraging for bulls hoping for a spike above $50,000.
If the sellers stay in control, support could originate from the nearby $47,000 near-term downside barrier. Should this foundation break down the price may sink towards the $45,000 and $43,000 troughs before eyeing the $40,000 zone. However, if the price overshoots the $50,000, the bulls may then seek out the $57,600 moving average (MA 50) high before tackling the all-time high of $69,000.
BTC/USD 4-Hour ChartThe short-term oscillators are revealing waning negative momentum as buying interest bolsters. The relative strength index (RSI), in the bearish region, is distancing itself below its midline 50, while the 4-hour moving average (MA 50) is above price. The $45,000 support bar is still laying below the price, suggesting the bulls could return keep the upper hand in the near term.
Below the moving average (MA 50) the $47,000-$45,000 zone may attempt to block the way towards the $40,000 psychological number, and hence prevent an outlook deterioration in the broad picture. In the event selling pressures persist below the MAs, the spotlight will fall on the $40,000 support area. The recent bounce in BTC/USD might gain extra legs in the near term, but buyers would probably wait for a clear break.
Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
