- Bitcoin continues to trade in tight range above $7000.
- Despite modest rebound, BTC/USD looks to close week in red.
Bitcoin's (BTC/USD) recovery attempt on Saturday lost its strength ahead of $7400 amid a lack of volume ahead of the new year break. After closing the day 0.7% higher on Saturday, the BTC/USD pair has gone into a consolidation phase on Sunday and was last seen moving sideways near $7300, where it closed the previous day. Despite the latest rebound, the pair is still down 2.7% on a weekly basis.
The Relative Strength Index (RSI) on the daily chart is staying flat near the 50 mark, suggesting that the pair could extend its sideways grind in the short-term. On the other hand, the fact that the pair was able to close the third day in a row above the 20-day moving average (MA) could be seen as a positive development but the absence of significant fundamental drivers and the choppy market activity are likely to keep the pair's gains in check.
$7400 (Fibonacci 23.6% retracement of the October 26-December 18) aligns as the initial hurdle ahead of $7600 (static resistance) and $8000 (Fibonacci 38.2% retracement October 26-December 18 drop/psychological level). Supports could be seen at $7200 (20-day MA), $7000 (psychological level) and $6430 (December 18 low).
BTC/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.