Bitcoin (BTC) currently trades at $8,807 having corrected higher since it dipped below $8,700 on November 11.
However, BTC price remains in a bearish zone. The current price level is below its key support lines and it faces huge resistances starting at $8,880 to $9,000 levels.
Although the top cryptocurrency has corrected higher over the last several hours, it’s trading in a series of lower highs punctuated by lower lows. It means that Bitcoin’s price remains on a weak footing that could see it turn south if it faces more price rejections as witnessed over the last few days.
BTC prices have dipped in consecutive weeks, losing over 2.5 percent in the last two, as its last surge in October fades. On October 25 to 26, BTC price rode a surge in trading volume to see its price hit levels above $10,400.
BTC/USD bounce capped at $9,150
Yesterday, Bitcoin rose to levels above $9k, hitting resistance at $9,150. Despite the recovery, mounting selling pressure against the U.S dollar capped any further uptrend. Momentum fizzled out and prices dipped below the 100-day MA100, clipping gains as sellers pushed it to $8,850.
Continued decline squeezed the weakened bull case and pushed the price to levels below $8,800 and $8,700. From here bitcoin traded lower as it edged closer to a new 30-day low near $8,600.
Bitcoin’s indicators are flashing red and prices could sink further if another downtrend breaches key support lines. The crypto is trading below its 200-day MA ($9,236) and the relative strength index (RSI 14) is at 53.00- bearish zone.
But a quick decline has seen it fail to hold above $9,300. Even though BTC prices are trading above its 23.6% Fibo, an absence of further upsides could mean the current bearish trend will hold.
If a downside materializes and clears support at $8,680, then prices could test $8,500. If BTC breaches its 50-day simple moving average at $8,552, then the next major support line is at $8,000.
- Bitcoin price climbs above $8.8k but faces major resistance at $9,000
- Inability to climb above the recent key level at $9, 315 further weakens BTC and invites the bears
- A drop below current support lines could see prices dip to $8,500
While a further plunge in crypto market prices is likely, experts opine that a number of catalysts could contribute to another upside towards $10k.
Among these catalysts is the report that China is set to launch a central bank digital currency (CBDC). Yesterday, CNBC carried an interview in which HCM Capital partner Jack Lee noted that the CBDC could be ready for launch as early as February.
Bakkt’s move to attract institutional money into the crypto space is another potential catalyst. The New York Department of Financial Services (NYDFS) has granted the custody provider license. What this means is that Bakkt can extend its custodial services to any mainstream institution. That opens the door for further crypto adoption by institutions- seen as the missing link towards bitcoin becoming a global currency.