Daily Bitcoin Update
As we enter the last week of December, the bearish sentiment that has so far defined the month still seems to have a grip on the market. The bearish die was cast earlier this year when US authorities announced December 5 as the date for the second Silk Road bitcoin sale, an auction which this time saw 50,000 confiscated bitcoins sold compared to the 30,000 sold in the first round in June.The uncertainty in the lead up to this event kept nervous buyers and sellers away at the start of the month, and away they stayed for the better part of a week after the event too. Eventually the bears took hold, however, with the price steadily pushed down over the past two weeks, enjoying temporary respite when Microsoft announced its decision to begin accepting bitcoins and later bouncing of the month low of 302 which was hit on December 18. The bearish bias still prevails, however, and will likely stay until key upside resistance levels are breached.
December 22nd Bitcoin Trading Session
The bitcoin price opened at 322 on the 4H Bitfinex chart, just above the daily moving average. A bullish correction found its feet early in the day and the price moved smoothly upward in the following hours. This trend faced a little resistance around the 330-331 area that lies just below the overbought territory (pink line) and struggled to hold above here for long. At press time, the bitcoin price sits comfortably in a sideways zone in the absence of any serious selling pressure or influential volume from either side.
What to Expect Today?
The price is currently below the 200 and 100 hour SMAs but has successfully breached the 50 hour SMA (above 327). The RSI sits around 59, indicating a near-term bullish presence in the market. With the price already having broken the resistance level at 330, the next resistance level to attack is 340 – a strong support area during the downtrend earlier this month. Until this level is crossed, we see the price as more likely to test its 320 support level than break on the upside.
If the price can get a hold above 340, this will open up the 360 area and bring upside risk towards 373-380. In a long-term bullish scenario, the price could potentially run from here all the way to 455.
Conclusion (On Daily Charts)
Current Mood: Bearish
Moving Averages: Strong Sell (2 Buy 10 Sell)
Technical Indicators: Strong Sell (0 Buy 9 Sell 2 Neutral)
Do you think the price will rise or fall?
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