The Christmas isn’t turning out to be merry for Bitcoin. The cryptocurrency is struggling near the overhead resistance of $465. It is now trading 1.28% lower at $450.89, raising concerns that the market participants might pull out their funds in the holiday season. As a result, several technical indicators are also showing declines.
We advised in the previous Bitcoin price technical analysis Target Achieved that traders should book at least partial profits in their long positions. And for today’s analysis, we will again be using the 4-h BTC-USD price chart from BITSTAMP.
Chart Structure – Bulls once breathed heavy when bitcoin pierced $450 quickly. The cryptocurrency, however, is expected to take support near $440. The 100 4-h SMA of $443.3904 and the 20 4-h SMA of $446.4165 will keep the cryptocurrency afloat from a near-term perspective.
Momentum – Fueled by the rebound, the Momentum indicator topped 20 but has dropped to 8.4800 as the market remains undecided about the future course of action.
Money Flow Index – The MFI has retraced a bit from the overbought territory, and now reads a value of 73.8766.
Relative Strength Index – Just when it looked that bitcoin is gaining strength and may defeat the bears, bitcoin price declines as does the RSI. The current RSI value is 52.9251.
The small dip is not an attractive buying opportunity. Market participants are best advised to wait for levels close to $440 or create long positions only after the resistance has been breached. Until either of these happens, bitcoin may remain sluggish.
Another technical point that market participants must consider is that with this being the last week of the year, the volume will remain relatively low and may return only post the first week of January. Also, no surprises in volatility are expected.