Daily Bitcoin Update
After trending sideways in bearish territory just above the key 300 support level, the bitcoin price made an impressive recovery over the latter part of the weekend session, rallying from a low of 304 to a high of 331. The price never broke through the 331-335 resistance area, however, as profit takers began to appear keeping a lid on the price.
December 21st Bitcoin Trading Session
The bitcoin price opened at 323 on the 4H Bitfinex charts after pulling back from the resistance level around 330. In the hours that followed, there were a number of attempts from the sellers to force the price back into strong bearish territory, but this was met every time by strong buying which kept the price comfortably in the sideways zone. We still see the price in long term bearish territory, but the promise of a near-term bullish correction is now very real.
What to Expect Today?
At press time, the bitcoin price is below the 200, 100 and 50 hour SMAs and EMAs, while the RSI sits near 51. Overall, this indicates a neutral-bearish sentiment in the market. The bearish bias can only be considered gone once the price breaks above the 340 resistance level; until then, the previous support level of 300 is still firmly in sight with downside risk towards the October low of 275.
On the upside, the 330-340 still looks like it may attract some strong selling. Be wary of any big, bold bullish calls in this range.
Conclusion (On Daily Charts)
Current Mood: Bearish
Moving Averages: Sell (1 Buy 11 Sell)
Technical Indicators: Strong Sell (1 Buy 10 Sell)
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