Christmas Day Saw a Dip in the Price of Bitcoin, but It Remains Appealing

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Last Updated on December 25, 2023 by Bitfinsider

The price of bitcoin made an attempt to rise above the resistance level of $43,500. Although BTC moved above $44,000, bears were still active around $44,300.

A peak was reached at $44,300, and then the price began a new descent. Below $44,000 and $43,500, the price dropped. The upward rise from the $40,515 swing low to the $44,300 high was retraced at a 23.6% Fib level.

Right present, the price of bitcoin is below both the 100 hourly Simple Moving Average and $43,500. The hourly chart of the BTC/USD pair also shows the formation of a significant descending channel, with support located around $42,850.

The pair is currently testing the channel support; if it breaks below, it may move faster down below $42,400, which is the 50% Fib retracement level of the upward move from the swing low of $40,515 to the high of $44,300. A new rise could occur if the bulls hold the channel support.

Immediate resistance on the upside is located close to the $43,500 mark. Around $44,000 and $44,300, the first significant resistance is starting to appear. A closing over the resistance level of $44,300 would spark a significant upswing, possibly breaking above the $45,000 barrier.

The next significant barrier may be found at $46,500; if this is overcome, Bitcoin may move up toward $47,200. Any additional advances might push the price closer to $48,000.

Bitcoin may continue to decline if it is unable to break above the resistance level around $43,500. Substantial downside support is located close to the $42,800 mark.

Near $42,400 is the next significant support level. There is a chance for further losses if the price drops below $42,400. In the given scenario, a short-term price decline approaching the $41,200 support level is possible.

Some of the technical indicators are as follows:

  1. Hourly MACD: The MACD is currently moving faster toward the negative area.
  2. Relative Strength Index (RSI) hourly: At this point, the BTC/USD RSI is below the 50 threshold.
  3. Primary Support Levels: $42,400 and $41,200.
  4. The key levels of resistance are $43,500, $44,300, and $45,000.

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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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