- “As we expected, BTC continues to trade in a range although it’s nice to see a bounce above $4k,” Atlas Quantum weekly insights.
- If Bitcoin price maintains position above $4,000, it is likely to gain traction towards $4,500.
Bitcoin is currently battling to stay above $4,000. The slight bullish correction this week has seen the investors get a breather after a gruesome month. Bitcoin has explored new 2018 lows this month. However, the reversal that began this week saw Bitcoin come out of the bear range with a resistance hurdle at $3,500.
The $70 billion crypto is currently trading at $4,002 and is still sustaining position with the week-long ascending channel. There has been an increase in the trading volume since the week’s started. The trading volume was at $3.5 billion on December 15 and now stands at $9.1 billion. The market cap also increased considerably from $56 billion to $70 billion in the same period.
The Brazil-based Atlas Quantum, a multinational crypto investment platform has today released its weekly crypto investment insights. The team reckons that:
“As we expected, BTC continues to trade in a range although it’s nice to see a bounce above $4k. Volume is up right now and it’s difficult to tell what’s driving this week’s price action. The likely reasons include: a whale moving funds around, algorithm-driven trading strategies that thrive on volatility, etc. We’ll continue to wait and see.”
As long as Bitcoin price maintains its position above $4,000, it is likely to continue gaining traction towards $4,500. However, at the moment the upside is capped below $4,200 while the ascending channel is also limiting gains. Further up $4,400 is a seller concentration zone which is likely to stand in the way of correction above $4,500 and eventually $5,000.
On the contrary, the 50 SMA is moving higher above the longer term 100 SMA showing that bulls’ influence is still significant in the market. The RSI has retracted from the overbought levels and is currently heading south. The channel support is essential in the event the slight declines in progress continued below $4.000.
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