Recent Bitcoin Price Movements
Bitcoin (BTC) took a nosedive on Monday morning, sinking nearly 5% to reach lows of $8,593. This dramatic drop came after a brief weekend recovery that pushed prices above the $9,000 mark. As the proverbial tide rolls out, it appears many other major cryptocurrencies have also been swept under the current, with Ether (ETH) managing to stay somewhat afloat against the U.S. dollar yet still losing ground.
The Weekly Chart: A Struggle Against Resistance
On the weekly chart, Bitcoin faced a stubborn barrier at the $9,500 mark. This resistance has proven tricky for BTC, more slippery than a politician dodging a question. The Moving Average Convergence Divergence (MACD) indicator shows that key exponential moving averages—the 26 and 12 EMAs—are crossing bearish, a sign that the bears are still in charge.
- Weekly resistance: $9,500
- Potential support: $7,600
- Price history: Back in June, Bitcoin touched highs nearing $14,000
Diving Deeper: The Daily Chart Insights
Switching gears to the daily chart, things aren’t looking much brighter. Bitcoin has lost the support of the 200 daily moving average, a pivotal point that sent it through a thin gap in the Volume Profile Visible Range (VPVR). It’s as though Bitcoin fell through a trapdoor on its way to the dungeon of lower prices!
The 50 daily moving average is now pivotal, propping the price just above the 61.8% retracement line, which previously helped Bitcoin flirt with that elusive $10K level. Will it be the hero or the villain this week?
Zooming in: The 4-Hour Chart Analysis
Taking a closer look with the 4-hour chart, we see potential targets lurking around the mid $8,200s. The MACD here also hints that bearish momentum is creeping in, much like that pesky mosquito at a summer barbecue.
Should bulls manage a turnaround, they’ll have to reclaim the $9,500 resistance to breathe easy again.
The Order Book: Bulls and Bears Face Off
In the battle for dominance, the Bitcoin spot USD order book indicates a significant interest from buyers just above the $8,000 level, slightly tipping the scales toward bullish hopes. This isn’t foolproof evidence as hidden orders could skew the results, but it suggests that bulls are ready to defend their territory at the key levels.
Looking Ahead: The $8,000 Psychological Barrier
As the days unfold, all eyes will be on the $8,000 handle this week. If bulls can maintain the fort and hold this line, we may witness a defensive reaction leading up to a more robust close for the year. December often brings significant price movements, and with the Bitcoin halving just around the corner in five months, the market is gearing up for a potentially wild ride!
Remember folks, the sentiment in crypto can change quicker than a cat meme goes viral; always do your own research before diving into the trading pool!
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