In the last 10 days, we’ve seen a number of false dawns in the BTC market. On 22nd December, the Bitcoin price closed above $7,600 and touched a monthly high of $7,690 before dropping down to the low $7,000s again.
Then, on 26th December, the price climbed above $7,400 only to drop to $7,050 the next day. Finally, BTC reached a weekly high of $7,530 on the 29th only to correct downwards and form a low at $7,174 yesterday. Currently, Bitcoin is trading at $7,224 at the time of writing.
Yesterday, the Bitcoin price dropped below support at $7,300 and $7,200; however, support at $7,150 kept the price up as it closed below the SMA100 for the first time in 3 days.
Currently, BTC is consolidating its losses above $7,200, and initial resistance is at $7,240. Further resistance can be found around $7,260, which is the 23.6% Fib retracement of the drop from $7,530 to $7,174.
However, as has been the case for the last few weeks, major resistance lies at $7,300. A successful break and daily close above that level and the SMA100 could see the price test resistance at $7,400.
Intermediate resistance may lie near $7,360 which is the 50% Fib retracement of the drop from $7,530 to $7,174. A push above that and $7,400 could see Bitcoin test $7,500, $7,600 and even $8,000.
Conversely, there’s a bearish trend line forming and the price may be pushed back by resistance at $7,300 and the SMA100. If that happens, BTC may drop below $7,200 again and probably even $7,150, after which support at $7,000 may come into play.
2020 is here, but BTC still remains the king of unpredictability.