Bitcoin [BTC] gains 6.7% on a 24-hour scale as the price reached a high of $7644. The weekly closing price of Bitcoin was at $7505; 5.5% higher than the opening.
Despite the price recording a new low for the second of the year, the asset closed in green. The price of BTC at 2: 00 hours UTC on 23rd December 2019 is $7604.
Since the opening for last week was year $7100, Bitcoin price was looking to close in a Doji, signifying uncertainty. However, in the last few trading sessions of the week, the price turned upwards, closing with a possible ‘hammer’ formation on the chart.
Nevertheless, it also recorded a ‘gap’ with the CME exchange of over $200. In the past, the market has had a strong tendency to fill these gaps; this points at a correction to $7230.
Bullish Resistances Ahead
The price broke above resistance around $7400 in the parallel chain. Currently, it is facing resistance from the 50-day Exponential Moving Average at $7675.
Moreover, it is also facing resistance from the long-term descending trend-line. A break above $7800 could finally end the bearish trend in the short to medium term. Nevertheless, a break to a downside could reach new lows.
The current move has a strong potential for a bullish reversal. However, the current long term trend is still bearish at the moment.
The funding rate on BitMEX turned positive after days of uncertainty because of the move on 18th December. On Okex, however, the traders are opening more short positions than long with a 0.93 long/short ratio at press time.
Further bullish action is expected to meet with the some resistances in the beginning of $8k region, post which $10,000 becomes rather easy. While it seems like a reversal at the moment, the volatility and prior price action could also lead another fake bounce before making new lows.
Do you think the price will turn bullish or remain bearish in the short term? 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