Bitcoin rebounds modestly toward $7300 in quiet Saturday trading

Bitcoin finds support near $7000 handle on Friday.
Bitcoin snaps four-day losing streak, continues to trade in-between key levels.

Eren Sengezer FXStreet

Bitcoin (BTC/USD) closed the last four days of the week in the negative territory and edged lower toward the $7000 handle on Friday before finding support there and closing the day with modest gains. In the absence of significant market drivers, the BTC/USD pair extended its technical recovery and was last seen trading at $7285, adding 0.55% on a daily basis.

Technical outlook

After touching a fresh eight-day low of $7050 on Friday, Bitcoin gained $200 to close the day above the 20-day moving average (MA) at $7250. On the daily chart, the Relative Strength Index (RSI) rebounded to 50 handle to suggest that the near-term bearish pressure is softening.

However, the Fibonacci 23.6% retracement of the October 26-December 18 drop is located at $7400 and the pair could have a difficult time breaking above that level. Additionally, a static resistance seems to have formed near $7600 ahead of $8000 (Fibonacci 38.2% retracement October 26-December 18 drop). On the other hand, the 20-day MA could be seen as the initial support at $7180 ahead of $7000 (psychological level) and $6430 (December 18 low).

BTC/USD daily chart

Author

Eren Sengezer

FXStreet

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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