Bitcoin [BTC] price failed to break past resistance around $7500 as the price dropped to test lows at $7150. The daily close on Christmas Eve was at $7250.
The price of Bitcoin [BTC] at 3: 30 hours UTC on 25th December 2019 is $7238.
The price bounced back above the highest volume profile levels around $7150. Along with the mid-line of the Bollinger Band, the 50-EMA on the 4-Hour Chart $7225 is acting as support to the price.
A break below this could the lead price back to $6k levels. Nevertheless, the current rejection seems bullish. B.Biddles, a crypto trader and chart analyst tweeted,
Poc reached. Nice initial rejection. If we lose this, 6.4 retest imo to see how much demand is still left down there.
The CMF is negative along with the MACD on the daily and weekly. However, on a daily scale, the MACD bounced positive in the neck of time before a bearish reversal on 18th December. The RSI on both these charts are evenly poised.
Hence, looks like the weekly oscillators are bearish, while the daily is neutral.
According to Skew Data, the futures volume on the Chinese exchanges like Huobi and Okex is about $5.25 billion. While the combined volume on BitMEX, Bakkt and CME is around $2 billion. The discrepancy can also be attributed to the holiday season in the west. Nevertheless, the aggregated trading volume is quite considerable.
Moreover, the funding rate on Okex and BitMEX suggest indecision in the markets. Nevertheless, BTC basis on Okex is positive since 23rd which is a positive sign.
As the market remains bearish, the current support levels are critical for another drop below the $7k levels. Nevertheless, longer periods of accumulation and channel play-outs could eventually awaken the bulls.
Do you think Bitcoin can bounce above $7500 again? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com