Bitcoin’s Current Position
As we cruise into the weekend, Bitcoin (BTC) finds itself hovering around $7,200. This price came after a notable upward swing on Wednesday. While BTC seems to enjoy a particular spotlight, it’s worth noting that other cryptocurrencies are not exactly basking in the glow. Ether (ETH) is valiantly struggling to regain the $130 mark, and XRP continues to dodge the elusive $0.20 threshold, making it a bit of a roller coaster ride for altcoin aficionados.
Bitcoin Dominance: The King Reigns Supreme
Bitcoin dominance is strutting around at 68%, eyeing the 70% mark with the confidence of a cat that just knocked over a vase. This uptick in dominance could correlate with Ethereum’s continued slide in market cap, making it seem like BTC is strutting its stuff while ETH quietly contemplates its life choices.
Trading Range Dilemma
Bitcoin is currently wedged between a long-term weekly resistance level of $7,600 and support hanging out in the mid $6,000s. The recent 15% swing created a whirlwind that engulfed the previous trading days but failed to break through the descending resistance that has characterized December thus far. Currently, BTC is finding a cozy spot above $7,000, but the moving averages—the 50, 100, and 200-day—are trailing above, painting a rather bearish picture on the daily chart.
Indicators Showing Mixed Signals
Looking at some technical indicators, the On-Balance Volume (OBV) is maintaining a long-term bullish divergence, a glimmer of hope amidst the sea of bearish sentiment. Meanwhile, the MACD remains below zero, hinting at less-than-ideal conditions. However, it is trending upward, offering a semblance of optimism. If BTC intends to make any true progress, it must rise above the declining resistances along with the critical $7,600 weekly resistance level.
The 4-Hour Chart: The Bull’s Attempt
The 4-hour chart reveals a compelling struggle, with bulls testing various levels like they’re trying out for a reality show. Currently, Bitcoin trades above the “point of control,” and the weekly open at $7,115 is a pivotal level that needs to hold as we wrap up the week. The rising volume on green candles adds a positive twist, suggesting that the bulls are gearing up for a push to defend that all-important weekly open.
Looking Forward: The Road Ahead
While there are whispers of potentially bullish activity, Bitcoin appears firmly in a multi-month downtrend. To flip the script from bearish to bullish, Bitcoin needs to sieze powers by closing above significant resistances, notably the $7,600 mark on the weekly chart. If BTC can climb above the $8,000 barrier, it may signal a shift in market direction that’s been comfortably lounging in bear territory for too long.
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