Daily Bitcoin Update
The steady decline in the bitcoin market which began about two weeks ago saw the price touch a December low of 302 today before a bounce back later in the session. As we touched on yesterday, we see the trading area between 275 and 300 as a potential bottom for a strong rally in a repeat of October when the price moved from less than 280 to over 400 in a little over a week. Our hopes are thus high.
December 18th Bitcoin Trading Session
The bitcoin price opened at 317 on the 4H Bitfinex chart and was quickly met by a wall of sellers. This sent the price to a two month low of 302 and well inside the oversold region. Price correction soon followed and the market jumped to a high as 320, though the bearish bias never left and is still very much clouding the markets.
At press time, the bitcoin price sits at 310 and has dropped around 3% over the last 24 hours. The price is attempting to trend upwards on the hourly charts, with a majority of near-term moving averages indicating bullish momentum.
What to Expect Today?
The 4H technical indicators have not changed much for the bitcoin market. We have strong bearish momentum and bias which will remain until the price can find its feet above the 318-320 area, from which point it may attempt a near-term bullish correction and test 324 as the next resistance level. A break above 324 will bring the 340 area firmly back in sight, but the market can guarantee a full bearish breakout only when the 340 resistance level is breached.
Overall, bearish pressures will remain if the price stays below 324 with the support level of 275-300 likely to be tested again over the coming period. Sellers still outnumber buyers. Conclusion (On Daily Charts)
Current Mood: Strongly Bearish Moving Average: Strong Sell (0 Buy 12 Sell) Technical Indicators: String Sell (0 Buy 8 Sell 3 Neutral)
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