Although Bitcoin’s price has shown a lot of volatility this week, it is still trading near weekly opening.
The price of Bitcoin [BTC] at 13: 45 hours UTC on 21st December is $7129.
Traders Growing Uncertain
There is uncertainty around the next move of Bitcoin [BTC]. The futures volume reached a high on 18th December as Bitcoin bounced from $6500. Nevertheless, the bear or the bull action as disappeared ever since. The volume has been dropping from the past couple of days.
The BitMEX funding rate is at a neutral position at the moment. Hence, the bulls and bears are evenly matched in the market currently. On Okex as well, the order book looks evenly balanced at the moment with a slight bullish inclination.
According to Tone Vays, the Doji on the weekly possibly signals two things accumulation or bottom. Hence, it is likely that Bitcoin shoots up in the coming week or continue along the same price. However, the latter could lead to further downside.
Fear Rules the Market but Bulls Unshaken
The PlusToken dumping and miner capitulation at the moment threaten a drop. Hence, even now there is a lot of fear in the market.
The fear and greed index of Bitcoin is still in the fear region with only slight revival after the bounce above $7000.
The parallel channel that Bitcoin has built over the last couple of weeks acts as the immediate resistance and support levels. The resistance is along $7400-$7800, with a potentially massive upside past that. While the support is along $6800-$6900.
Which side do you think the price action will occur next? 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