Coinarch Daily Bitcoin Price Review
Daily Bitcoin Update
The bitcoin price finally succumbed to the repeated selling pressure overnight, plunging below the key 300 support level with which it had been flirting on and off for some time. The most concerning part of the fall was the absence of any clear bottom, with the price failing to hold at either 300 or the October low of 275. For now, a strong bounce back feels unlikely with the market still exhibiting a marked bearish bias.
Speculation as to the cause of the dramatic drop is rife, with much attention being focused on the effect of a strong US dollar and its impact on associated trade able assets. The likelihood of US dollar rate hikes in the first half of this year from the Fed have the potential to further strengthen the greenback.
January 4th Bitcoin Trading Session
The bitcoin price opened at 278 on the 4HBitfinex charts and continued its downtrend from Saturday after a number of hugely influential sell orders hit the market. The market found no way to fend off this bearish attack which eventually brought the price inside a very strong bearish bias. At press time, the bitcoin price sits at around 265 and has fallen around 11% in the last 24 hours and a full 17% since the start of the weekend.
What to Expect Today?
The price is currently trading around $40 below the next simple moving average, while the RSI sits around 14. This indicates a very strong bearish bias and continuation in the market, all of which can be put down to persistent market sells. We expect that at some point buyers will remerge to support the market, possibly once a key psychological downside price level is breached. As to what that level is, we are unsure; perhaps the nearest key price level of 250 will be the catalyst for some respite. If we do see such an emergence of bulls, we see the potential for a price rally towards the nearby resistance level of 275. Only a break above this point will establish a near-term bullish correction and a rally towards 200 or above.
If the price continues to fall towards an invisible bottom, we are expecting it to test the low 200s as its next support level.
Conclusion (On Daily Charts)
Current Mood: Strongly Bearish
Moving Averages: Strong Sell (0 Buy 12 Sell)
Technical Indicators: Strong Sell (1 Buy 7 Sell 3 Neutral)
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