After a gradual move through the day, Bitcoin’s [BTC] price gained 2.41%. The crypto-markets also witnessed gains during the day with Ether [ETH] rising by 3.82% on the daily.
However, the price fell short of breaking the resistance around $7500 with a big red engulfing candle re-testing and breaking the support below. The price of Bitcoin [BTC] at 3: 00 hours UTC on 30th December 2019 is $7350.
The price flipped past resistance around $7290 followed by the gradual rise. However, the swift fall re-tested the the level the support. According to trader, B.Biddles the re-testing of support is positive signal following the break-out from above $7325-$7350.
Times of High Volatility
The volatility in Bitcoin [BTC] is quite high at the moment, derivatives trader Zoran Kole notes drying up of liquidity of the price above $7400. According to Kole, the failure to break above $7500 is a sign of weakness. He tweeted,
$ Update: Feels like whipsaw is incoming this weekend. Stop run to 73xx before moving to 69xx seems likely. Leaning bearish until we trade above 75xx #
Moreover, due to the high volaility the traders might get in FOMO or FUD soon. This is the third time during the holidays that the price flipped on either side. The first two were both a bullish and a bearish fake-out. As Josh Rager notes,
You’re allowed to flip bias at any moment when analysis shows, just like any trader who switches from short to long
Hence, while their are arguments on both side with no clear direction, the range between $7800 and $6900 is a crtical threshold. However, one must follow their trading plan and sticks to their stops. Moreover, hedging of leveraged trade also reduces the risk.
Do you think Bitcoin will trade break above resistance at $7500 soon? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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