- Bitcoin price trades lethargically under $7,100 and defending $7,000 support.
- The bulls refuse to give up home, especially with the formation of a falling wedge pattern.
The cryptocurrency market continues to take a breather after a rough couple of weeks. Bitcoin tested $6,500 support in November before recovering slightly towards $8,000. A high formed at $7,872 put a stop to the momentum has Bitcoin bears took over. In the last couple of weeks, Bitcoin has been lethargic between $7,000 and $7,600. The support at $7,500 has been put in jeopardy several.
Consequently, Bitcoin is trading marginally below $7,100 after defending $7,000 support. Capping the immediate upside is the 38.2% Fib retracement level taken between the last swing high of $13,834 to a swing low of $3,147.
BTC/USD daily chart
Moreover, the price is dancing below the 50-day Exponential Moving Average as well as the 100 EMA. In other words, the bulls will have to work harder to break the resistance at the 50 EMA, currently at $7,809. On the brighter side, trading above this zone could push Bitcoin above the crucial hurdle at $8,000. Marginally, above $8,000, the EMA 100 is in line to stop the bulls from extending the action towards $9,000.
The prevailing sideways trend is supported by the Relative Strength Index (RSI), lethargic at 36. Movement northwards has been capped under 50. If the RSI continues with the ranging trend, there is a possibility Bitcoin will push the sideways trading into most of the sessions this week.
The formation of a falling wedge pattern suggests that a breakout is imminent. However, the pattern resistance must first be broken, and the bulls ensure that they take advantage of the renewed momentum.
Bitcoin Key Levels
Spot rate: $7,067
Relative change: -45
Percentage change: -0.63%
RSI: Sluggish with the upside capped under 50.