Bitcoin And Ethereum Daily Price Forecast – Santa Rally Seems To Have Hit A Snag

Bitcoin price has minor support near $3600 with the resistance around $3800 pushing the price downwards. Bitcoin might soon crash further downwards to test the $3600 support and if the support is broken, bitcoin might fall to $3300 in short term. What was widely believed to be recovery rally commonly referred to as Santa rally is just another dead cat bounce in reality. The rally came to an end on Christmas eve as the pair saw downward correction with the price falling below $3800 up to $3680. There is a major resistance formed around $3800 pushing the price downwards. The support lies around $3600 and $3650 but is likely to be broken in short-term if the sellers continue to dominate the market. Bitcoin is currently on the edge of falling below the $3800 resistance.

No Clear Sign of Dead Cat Bounce or Mid-Rally Consolidation Yet

The long-term support lies at $3300 and if bitcoin price breaks through the current support around $3600 then it will most likely test this support. However if the pair manages to resume another bullish price action in near future with support at $3700-$3600 handle then what occurs now will be viewed as consolidative price action post profit booking from recent upside move. Ethereum price is holding important supports against the US Dollar and bitcoin. ETH/USD could resume its upward move towards $140 or $142 in the near term. The ETH/USD pair corrected lower and tested the $120-121 support area. However, buyers were able to prevent losses below $121 and the 100 hourly simple moving average.

A low was formed at $121.71 and later the price started trading in a range. The price crawled back above the $130 level, with a positive angle. There was a break above the 23.6% Fib retracement level of the last decline from the $159 high to $121 low. Moreover, there was a break above a short term bearish trend line with resistance at $130 on the hourly chart of ETH/USD. It has opened the doors for more gains and the price may now trade towards $138 or $140. Besides, the 50% Fib retracement level of the last decline from the $159 high to $121 low is near the $140 level. Therefore, if the price continues to move up, it could face resistance near the $140 or $142 levels. This suggests that the ETH/USD pair is currently on consolidation phase before beginning its next upward rally.