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Bitcoin short-term Price Analysis: 10 December

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Source: Unsplash


Disclaimer: The findings of the following article are the sole opinion of the writer and should not be considered investment advice

Bitcoin, at the time of writing, was trading towards the lower side of $18,000. While after yesterday’s drop down to $17,640 BTC was quick to rebound above $18,000, it struggled to keep its position above the resistance level at $18,400. With the cryptocurrency’s price a little more volatile than last week, its short-term chart pointed to another possible recovery on the charts in the next few days.

Bitcoin 1-hour chart

Source: BTC/USD on TradingView

The 1-hour chart for Bitcoin pointed to the formation of a descending broadening channel. The crypto-asset previously failed to break above the trend line and dropped below $18,400. At the time of writing, however, even though the price continued to hold a position below the resistance level, the nature of the pattern implied a bullish return.

The price may have failed to breach the pattern due to the presence of the 50-Moving Average which was acting like an overhead resistance. At the moment, the price breakout may follow either the blue or yellow line of movement. A positive case that can be made is the decreasing trading volume alongside the price, a finding that suggests that any radical reversal would also lead to a price spike.

Market Reasoning

Source: BTC/USD on TradingView

While bullish momentum remained absent on the charts, other market indicators underlined the chances of a potential price surge. The Awesome Oscillator or AO indicated that momentum was absent with both the bulls and the bears, at press time. The Stochastic RSI was extremely bullish, with its bullish indicators completing a positive reversal in an oversold region.

Finally, the On-balance volume has continued to remain at a lower range since the last week of November. A price spike over the next few days would see it rise on the charts too.

Important Ranges

Resistance: $18,404 $19,054
Support: $17,640 $17,520
Long Position Entry: $18,000
Take Profit: $18,800
Stop Loss: $17650

Conclusion

Market indicators were clearly implying a rise which might just come into the picture before the end of the week. While the cryptocurrency’s price may not clear the resistance level at $19,054, a recovery above $18,400 seemed feasible, at press time.

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Biraajmaan covers market trends of major cryptocurrencies. As a graduate in engineering, his interests lie in Blockchain technology. With over a year as a journalist, his articles focus on US and UK markets.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.