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Bitcoin And Ethereum Daily Price Forecast – BTC & ETH Trade Flat Post Santa Rally Amid Holiday Thin Market

By:
Colin First
Published: Dec 27, 2018, 12:35 UTC

Bitcoin has been unable to correct above $4,000 since the slide on December 25

Bitcoin Crash

Bitcoin has been unable to correct above $4,000 since the slide on December 25. The bears seem to be back after they gave the bulls a chance to breath in the days leading to Christmas celebrations. Bitcoin had traded highs around $4,238.11 before starting to deflate and break below the trend line support at $4,032. This initiated a sharp drop below $4,000 as well as the 50 and the 100 Simple Moving Averages in the 1-hour range. Luckily, the declines found a soft landing at $3,700 as the buyers came in to stop further breakdown. At the moment, BTC/USD is stuck in a tight bear range with a resistance at $3,863.81. The price is still trading below the Simple Moving Averages while the digital asset is valued at $3,786.70.

Strong Support Limits Sharp Declines Amid Holiday Season

The path of least resistance is sideways according to the Relative Strength Index levels shown. Since the slide on December 25 the indicator has not explored the oversold region in addition to the current upward slope around 50. The pair is now consolidating losses incurred during thin holiday market and no major moves are expected to happened ahead of New year as many traders won’t return to their trading desk until first week of January when holiday season is completely over. Ethereum price is facing an uphill task against the US Dollar and bitcoin. ETH/USD may continue to face a strong resistance near the $130 zone. Recently, we saw a minor upside correction above $130 in ETH price against the US Dollar. The ETH/USD pair even moved above the $134 level, but gains were limited.

There was even a push above the 23.6% Fib retracement level of the recent drop from the $160 swing high to $121 low. However, the price struggled to settle above the $135 resistance and later declined. There was a break below the $126 level and the 100 hourly simple moving average. However, the price remained above the $121 support and it is currently consolidating losses. More importantly, there is a major bearish trend line in place with resistance at $130 on the hourly chart of ETH/USD. A break above trend line and then $131 may push the price towards the $135 resistance. On the flipside, the $121 support area holds a lot of importance. If there is a break below $121, the price could extend sharp declines.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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