Bitcoin is on course to end this week on a bearish note, losing roughly 5% from its previous weekly close of $442. The cryptocurrency failed to cross the resistance posed by the peaks of the past couple of weeks and faltered. Post the sell-off, bitcoin is trading at $419.69.
The sell-off occurred yesterday as market participants got tired of the extended consolidation and booked profits. The weekend weakness will make it tough for bitcoin to regain lost ground very soon. It may even witness further price depreciation as it has violated the support lent the low of the last week i.e. $428.42.
Taking a look at the weekly BTC-USD price chart from BITSTAMP, it can be inferred that bitcoin was trading in the overbought territory.
Chart Structure – Bitcoin hit a low of $407.25 during the recent profit booking. The action took place on lower volume as the participants flee the market to enjoy the holidays. For now, $465 is the resistance for bitcoin.
Bollinger Bands – From the chart above, it can be clearly seen that bitcoin was trading