Bitcoin price has fallen sharply this week, wiping over $100 billion in value from the combined crypto market. BTC got rejected after reaching highs of $52,100 in the last week of 2021. Investors now expect the lead crypto to continue its recovery into the first week of 2022, after plunging to lows of $45,975. BTC/USD bears surrendered to bulls as prices bounced back to the moving average (MA 200) at $47,926 intraday high today. Bitcoin was trading at $47,036 at the time of publication, up nearly 1% in the past 24 hours. In addition, as the overall risk tone improves, BTC continues to pose a threat to the U.S. dollar’s demand. The relief rally also comes ahead of Friday’s Bitcoin options expiry, as a total of 129,800 options contracts worth more than $6 billion will expire. Bitcoin might come back swinging to erase all its losses for the week and trade even higher as BTC’s largest institutional investor MicroStrategy disclosed that it acquired additional 1,914 Bitcoins from Dec. 9 to Dec. 29.
Key Levels
Resistance Levels: $53,000, $50,000, $48,500
Support Levels: $45,000, $43,000, $40,000
BTC/USD Daily ChartBTC/USD fresh minor pullback from $52,100 has found some footing off the price at $45,975, keeping the latest outlook in a rebound as the pair continues to plot a higher move. However, the horizontal moving average (MA 200) might restrict the uptrend. Although, bulls above $47,000 look set to complete a bullish crossover of flattened moving average (MA 200) near $48,000, which would add credibility to the rally.
Otherwise, if the immediate resistance curbs the rally progress, prompt support could emanate from the nearby $45,975 and $45,000 lows, respectively. Now, in the event a deeper retracement develops, a critical section between the ascending trendline support could prove hard to dive past. That said, if negative pressures triumph, sellers may aim for the $43,000 trough and the $40,000 handle.
BTC/USD 4-Hour ChartLooking at the 4-hours chart the price settled above the $45,000, and below the moving averages (MA’s 50 and 200). The pair spiked above $47,000 today, and it seems like the bulls are aiming more upsides. The next resistance is near the $49,500 level. If there is a clear move above, the pair could even rise above $50,000 in the coming days.
On the downside, immediate support is near the $45,000 level. There is also a rising trendline on the same chart. Any more losses might send the pair towards the $43,000 level. The RSI’s prolonged oversold situation could prompt buyers to take advantage. At present, RSI is crawling back up from the sell region with a charge promoting more positive price action.
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