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Bitcoin pares early losses, turns flat on the day near $7,500

  • Cryptocurrency market action remains subdued for the second straight day.
  • Bitcoin continues to fluctuate in a tight range around the $7,500 handle.

Bitcoin (BTC) fell to a daily low of $7,380 during the early trading hours of the Asian session on Sunday but didn't have a difficult time retracing its losses. As of writing, the BTC/USD pair was virtually unchanged on the day at $7,500. The lack of any significant developments that would attract the cryptocurrency market's attention causes major cryptocurrencies to remain stuck in their recent ranges. Even after the Istanbul network update, Ethereum continues to move sideways around $150.

Technical outlook

The Relative Strength Index (RSI) on the daily chart stays directionless near the 50 mark, revealing the pair's indecisiveness in the short-term. Additionally, a symmetrical triangle seems to be forming on the same chart, further supporting the view that the pair will remain neutral. Meanwhile, the pair seems to be holding above the 20-day moving average (MA) for the second straight day but that by itself is not enough to suggest that buyers are looking to take control of the action.

The initial support for BTC could be seen at $7,380 (December 7 low) ahead of $7,080 (December low) and $6,500 (Nov. 25 low). Resistances, on the other hand, align at $8,000 (Fibonacci 38.2% retracement of October 25 - November drop), $8,500 (Fibonacci 50% retracement of October 25 - November 25 drop) and $8,720 (100-day MA). 

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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