- Bitcoin was recently rejected at above $4,000; a move that opened the Pandora box.
- It will be uphill task for Bitcoin to come out of the current slump.
The cryptocurrency market has started its downward spiral gain as ‘Santa Claus” goes back to hibernation in the wake of the just concluded Christmas celebrations. The declines have seen the market slide back in red. Bitcoin is leading the retracement but some altcoin like Ripple’s XRP and Bitcoin Cash are following closely. The bears have wiped off at least $5 billion of the total market value from $127on Thursday $127 to $121 billion at the time of writing.
Meanwhile, Bitcoin’s dominance in the market has been reducing in the past few days and currently stands at $52.7%. The asset was recently rejected at above $4,000; a move that opened the Pandora box as bears increased their grip on the market, gnawing their claws together in readiness to send the price towards the current 2018 lows.
As discussed in the price analysis yesterday, Bitcoin continued with the slide below the then range support at $3,725. This drop was a catalyst to the waterfall drop that had Bitcoin drop past the short-term support at $3,600. Further downward movements found a support at $3,575. BTC/USD is currently stuck in a range with a resistance limit at $3,641.7.
Bitcoin – Confluence Detector
At the moment, Bitcoin is trading between the moving average support and resistance on the 15′ timeframe chart, although the price is risking losses below the current short-term support. The first significant support can be seen at $3,485.05. If Bitcoin drops below this level, it will find the next support at $3,296.98. It is important to note that this is a relatively weak support and is tested we could see Bitcoin refresh the lows and event form new lows towards $3,000.
On the upside, there numerous hurdles, which means that it will be uphill task for Bitcoin to come out of the current slump. Slightly above the current price level, the initial resistance exists at $3,673.12. A break past this level will open the door above $3,700 which will encounter a seller concentration at $3,748.38. Moreover, another resistance level will be faced at $3,974.03. Bitcoin is currently facing major hurdles to the upside and is likely to close 2018 trading below $4,000.
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