Bitcoin Price Analysis Dec 31: BTC Facing Significant Uptrend Resistance

Bitcoin Price Analysis

Bitcoin Price Analysis Dec 31: BTC Facing Significant Uptrend Resistance

Bitcoin price recovered nicely from the $3,538 low against the US Dollar. BTC/USD traded above the $3,810 resistance, but it struggled near the $3,885 barrier.

Important Points:

  • Bitcoin price seems to be facing a solid resistance near the $3,810 and $3,885 levels.
  • BTC broke a key declining channel at $3,690, but it struggled near the $4,000 handle on the 2-hours chart.
  • The price could correct lower in the short term towards the $3,650 or $3,600 support levels.

Bitcoin Price Analysis

After trading as low as $3,538, bitcoin price started a decent upward move against the US Dollar. BTC/USD broke the $3,650, $3,810 and $3,850 resistance levels, but it faced a strong resistance near the $3,885 level.

The 2-hours chart indicates that the price climbed above the $3,810 resistance and the 23.6% Fib retracement level of the last decline from the $4,195 high to $3,538 low. There was even a break above the $3,885 resistance and the 100 simple moving average (2-hours).

Bitcoin Price Analysis
Chart Source by TradingView, Binance

More importantly, the price broke a major declining channel with resistance at $3,690 on the same chart to initiate the upward move. However, it seems like the price struggled to stay above the $3,885 resistance and the 100 simple moving average (2-hours).

Besides, the 50% Fib retracement level of the last decline from the $4,195 high to $3,538 low protected an upside break. At the outset, the price is in a declining mode below $3,800 and it may continue to move down towards the $3,650 support.

If there is a break below the $3,650 support, the price could drop to the last swing low at $3,538. On the upside, there is a solid resistance formed near $3,810 and a bearish trend line on the same chart.

Therefore, a break above the trend line, $3,810 and $3,885 is needed for buyers to take charge. In the stated case, bitcoin price may continue to rise towards the $3,950 and $4,000 resistance levels. Should there be more gains, BTC could climb further to test the $4,250 resistance zone in the near future.

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Bitcoin Price Analysis Dec 31: BTC Facing Significant Uptrend Resistance
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Bitcoin Price Analysis Dec 31: BTC Facing Significant Uptrend Resistance
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Bitcoin price recovered nicely from the $3,538 low against the US Dollar. BTC/USD traded above the $3,810 resistance, but it struggled near the $3,885 barrier.
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Latika Mehrotra 71 Articles

Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]

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