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Bitcoin price analysis: Recovery stalls

  • After refreshing 2018 lows, Bitcoin recovery hits a snag at $3,2256.86.
  • The RSI (1-hour) avoids the oversold region since December 8 in spite of declines to annual lows.

Bitcoin has seen a slight recovery since the Sunday the 16th of December. The recovery comes after the asset continued to correct lower last to the extent of breaking last week’s major support at $3,200. As discussed in the market update earlier today, BTC/USD descended to new 2018 lows at $3,100. The buyers barricaded this level preventing further breakdown towards $3,000.

The recovery is not unique to Bitcoin alone; other assets are embracing the breather as well. The market capitalization had slipped below $100 billion, however, at the moment, it is holding ground at $104 following the recovery in the market.

Bitcoin has added 1.37% on the day, it is exchanging hands at $3,234. Unfortunately, the recovery appears to have hit snag. In the last one week, Bitcoin has lost significant ground from $3,400. The growth from the yearly lows made it above the trendline resistance at $3,234.24 before coming to a halt at $3,256.86. Marginally below the current price, Bitcoin’s first support is at the 100 SMA (1-hour chart). Another moving support is highlighted by the 50 SMA in the same support.

In addition to the above supports, Bitcoin is range bound with anchor at the recent lows at $3,100. On the upside, $3,300 is limiting gains while $3,400 is another hurdle. The range mentioned has a limit at $3,500. Although the uptrend has stopped, the RSI is still at high levels,60.00. The indicator has avoided the oversold since December 8. It’s likely to head south in the short-term but the DMI in the same range is holding position at 27.60, besides it is horizontal at the same position. Bitcoin could change the trend sideways as long as it can keep the price above $3,200.

Read more:

1.  Crypto market update: Recovery is finally here – Bitcoin, Ripple’s XRP and Ethereum set the pace

2.  Stellar (XLM) holds tight to the 4th position: Tether (USDT) could dethrone XLM

BTC/USD 15′ chart

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