- Bitcoin had been recently rejected above $4,000; a move that opened the Pandora's box.
- It will be an uphill task for Bitcoin to come out of the current slump.
The cryptocurrency market has started its downward spiral gain as ‘Santa Claus” goes back to hibernation in the wake of the just-concluded Christmas celebrations. The declines have seen the market slide back in red. Bitcoin is leading the retracement but some altcoin like Ripple’s XRP and Bitcoin Cash are following closely. The bears have wiped off at least $5 billion of the total market value from $127on Thursday $127 to $121 billion at the time of writing.
Meanwhile, Bitcoin’s dominance in the market has been reducing in the past few days and currently stands at $52.7%. The asset was recently rejected at above $4,000; a move that opened the Pandora box as bears increased their grip on the market, gnawing their claws together in readiness to send the price towards the current 2018 lows.
As discussed in the price analysis yesterday, Bitcoin continued with the slide below the then range support at $3,725. This drop was a catalyst to the waterfall drop that had Bitcoin drop past the short-term support at $3,600. Further downward movements found support at $3,575. BTC/USD is currently stuck in a range with a resistance limit at $3,641.7.
Bitcoin – Confluence Detector
At the moment, Bitcoin is trading between the moving average support and resistance on the 15’ timeframe chart, although the price is risking losses below the current short-term support. The first significant support can be seen at $3,485.05. If Bitcoin drops below this level, it will find the next support at $3,296.98. It is important to note that this is relatively weak support and is tested we could see Bitcoin refresh the lows and event form new lows towards $3,000.
On the upside, there numerous hurdles, which means that it will be an uphill task for Bitcoin to come out of the current slump. Slightly above the current price level, the initial resistance exists at $3,673.12. A break past this level will open the door above $3,700 which will encounter a seller concentration at $3,748.38. Moreover, another resistance level will be faced at $3,974.03. Bitcoin is currently facing major hurdles to the upside and is likely to close 2018 trading below $4,000.
Read More:
Cryptocurrency market update: Bitcoin miners’ in jitters as Japan’s GMO closes mining software unit
Bitcoin has no correlation with the stock market – reckons Morgan Creek Digital Assets chief
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.