As bulls and bears battle it out, the price of bitcoin is now hovering around a critical point. This struggle for control demonstrates hesitation among the participants and is frequently developed before a significant action. To avoid being caught off guard, short-term investors must be wary regarding the next move.
The Bitcoin price has reached a fork in the road. Over the previous six days, the price of bitcoin has fallen below the milestone of $50,000 five times. The December 9 drop resulted in a daily closing below it, despite BTC recovering above it the first four times.
Bitcoin (BTC)- Even though it is impossible to predict where BTC will go, let us suppose it will go up. In a certain event, Bitcoin price must close over $59,014 on a daily basis to show that the bulls have retaken control. This will result in a higher high and, eventually, a higher low, confirming the commencement of an uptrend.
Even after breaking the$59,014 barrier, BTC must enter a solid consolidation zone up to $61,000. Further than this point, the big crypto will then have to counteract the $65,509 barrier and ultimately the all-time high at $69,000. BTC must consolidate or reverse the decline and record a higher high above the previous barrier to trigger this scenario.
Despite the recent flash collapses, investors are still engaging with the bitcoin blockchain, indicating that they remain bullish on BTC’s performance. There is a possibility that this index may go into a deep recession, but there is also a chance that long-term investors will begin to process, resuming the uptrend. This also indicates that investors may be planning on buying the dip if one occurs or using stablecoins as a backup for their existing investments. Bearish BTC sentiment is on the rise.
Whereas the bullish scenario is not ruled out, the collapse of the $50,000 psychological level and the $48,326 support level shows that bears are in charge. If buyers fail to rescue the pioneer cryptocurrency at current levels, the slump is likely to worsen, sending BTC down to $40,596, the next support floor. If something like that takes place, market makers will most likely take the liquidity that has accumulated below this level, allowing BTC to re-enter the $30,000 area.
Consequently, investors should take precautions and watch how the Bitcoin price reacts toward the market sentiments. The bulls are attempting a return, as seen by a consolidation followed by a pump to $57,845. In that circumstances, market players must await confirmation.
Ethereum (ETH)- Last Sunday, Ethereum, the second most influential cryptocurrency, is trading on a shaky footing, undoing a portion of Saturday’s remarkable recovery from one-week lows of $3835.
As more than just a result, ETH is down approximately 1% on the day, trading around $4000, with little positive momentum amid a bearish sentiment among its crypto rivals. Bears in ETH are attempting to prolong the recent downturn from last Thursday’s six-day highs of $4490. The weekend’s weak market circumstances may amplify the potential swing downward.
The direction of least resistance for Ethereum looks to go lower. The four-hour chart of Ethereum reveals that the price is fading its rally after encountering heavy resistance with the negative 21-Simple Moving Average (SMA) at $4117.
However, the Relative Strength Index (RSI) remains below the midline, indicating that the negative bias is likely to persist in the future. As a consequence, ETH sellers may want to retest the rising trendline support, which is now around $3872.
A bearish breakout from a week-long symmetrical triangle might be verified if the ETH price breaks decisively below the latter. Bears in ETH will then prepare for a new downtrend toward the December 4 flash crash lows of $3575.
Join us for more updates: Facebook | Telegram | Linkedin
MX Global– Built in Malaysia for Malaysians
Legal Risk Disclosure:
Trading on cryptocurrency carries a high level of risk, and may not be suitable for all investors.
The high degree of leverage can work against you as well as for you. Before deciding to trade with MX Global, you should carefully consider your investment objectives, level of experience, and risk appetite.
The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
You should be aware of all the risks associated with cryptocurrency trading, and seek advice from an independent financial advisor.
Any opinions, news, research, analyses, prices, or other information discussed in this presentation or linked to from this presentation are provided as general market commentary and do not constitute investment advice.
MX Global Team does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.