Bitcoin Price Analysis: BTC/USD bulls are waiting for Santa's rally
- BTC/USD traders are waiting for new triggers.
- Bitcoin may develop an upside momentum ahead of the year-end.
Bitcoin (BTC) hit the bottom at $6,526 on November 25 and managed to claw back some ground since that time. While the bull started to lose their drive and again on the approach to $7,900, the traders try to find some glimpses of hope on long-term Bitcoin charts.
Let's have a closer look at what's going on with the first digital coin.
First of all, neither rally nor the retreat from the above-mentioned resistance has solid fundamentals behind them. The best guess is that the moves were triggered by whales positioning and speculations about whales positioning. Also, some rumors about a crypto ban in China might have had some negative impact on Bitcoin price, but this theory does not hold up against criticism. The country is known for its tough approach to trading digital assets, though it never stopped the citizens from using loopholes and roundabout ways to invest in Bitcoins and other virtual money.
The charts tell a story
We have long been speaking about $7,300-$7,350 area as a pivotal area for BTC. It includes 61.8% Fibo retracement for the move from $3,226 to $13924 and attracts the price as a magnet. Basically, BTC/USD has been moving to and from since the recovery from $6,526. We will need a strong impulse to brake the gravitation force that keeps BTC around this pivot.
Looking technically, while the weekly chart creates the third doji in a row, the daily chart shows rising bottoms, which may be interpreted as a mild bullish signal, provided that we manage to clear $7,600 (the recent high) in the nearest couple of sessions. If this happens, we may see a return to $7,900 and, potentially to critical $8,000 before the year-end.
Historically, the pre-Christmas period is good for financial markets. Cryptocurrencies are no exception here as Bitcoin rose both in December 2017 and 2018 ahead of the New Year. This phenomenon is known as Santa's rally.
If we manage to get a ride this year, BTC/USD may extend the recovery towards $8,600 (50% Fibo retracement) and $9,000, with the upside gaining traction ahead of halving.
BTC/USD, the daily chart
Author
Tanya Abrosimova
Independent Analyst
