Posted 10 minutes ago
Bitcoin price remains trapped in a tight range causing indecision in the crypto market. However, the daily chart is showing reversal signals at the top resistance of the range, which could push prices back down to $16,800. Anyway, is there a way for Bitcoin to end this consolidation?
Core items:
- A possible reversal from $17300 suggests continued consolidation in Bitcoin
- The 50-day EMA stands as dynamic resistance against rising prices
- Bitcoin intraday trading volume is $12.7 billion, indicating a 12% decline
Source-trading view
For the past two weeks, bitcoin price has been trading strictly within two horizontals – $17,300 and $16,800, indicating an apparent range-bound rally. After a massive inflow on November 8, the coin price bounced off the $16,800 support and hit the $17,300 resistance in a swipe.
However, buyers are still struggling to escape from this range, suggesting that sellers are continuing to defend the higher levels. The higher price rejection candles at the $16,800 barrier are emphasizing a high probability of a bearish reversal.
This reversal sent bitcoin price down 2% to revisit the $16,800 support as the ongoing consolidation is set to continue for a few more sessions.
However, the trades need a breakout of the above range barriers to initiate a directional rally and potential targets.
Will bitcoin price extend its decline?
A recent tweet from on-chain data provider glassnode highlights the realized loss for Bitcoin investors. The data shows the investor realized over the past 365 days but also highlights an annual gain of $455 billion realized in the 2020-21 bull market.
A total of $213 billion in realized losses has been retained by #Bitcoin investors in the last 365 days.
This compares to annual gains of $455 billion realized in the 2020-21 bull market.
This reflects a ~47% relative capital loss of bull market gains, similar to the 2018 cycle. pic.twitter.com/y5jaSWEZ83
— glassnode (@glassnode) December 8, 2022
Surprisingly, this capital loss of 47% bull market gains is similar to the magnitude of the 2018 cycle.
Additionally, these losses indicate a lack of confidence among holders, which is shifting market sentiment toward a selling motive.
However, if the market will repeat history and trigger a rally like 2019 is a bit early to say.
Technical Investor:
Relative Strength Index: The RSI indicator (49.8%) reflects the speed and height of the coin’s recent price, indicating a neutral outlook from market participants.
It is not: The Download EMAs (50 and 100) are pointing to a general downtrend, giving the upper hand to the sellers.
Bitcoin price intraday levels
- Spot Rate: $17154
- Tendency: bullish
- Volatility: Medium
- Resistance levels – $17,300 and $15,700
- Support levels – $16,800 and $15,700
For the last 5 years I have worked in journalism. I follow the blockchain & cryptocurrency for the last 3 years. I’ve written on a variety of different subjects including fashion, beauty, entertainment and finance. Contact me at brian(at)coingape.com
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
close story
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.