The overall crypto market remains in aftershocks following a brutal week of trading in the digital asset markets as Bitcoin (BTC) upside rally fades and much of the altcoins are heavily in the red. After a very strong bounce from the recent low of $42,333, Bitcoin goes on the sixth day in a sideways movement, possibly towards developing a countermovement in the near term. However, at the time of this post, BTC is back below the psychological level of resistance at $50,000 following a painful rejection. As bear market worries set in, Bitcoin is in a severe sell-off that has seen its price re-attempt declines toward the moving average (MA 200) critical support. A sell-off below here might trigger another cascade of liquidations for further dive to low levels last seen in months. On Dec .8, CEOs of leading crypto firms in the United States testified before the House Committee on Financial Services, with some of them appearing to present a united front in pressing Congress to give a clear regulatory framework for crypto.
Key Levels
Resistance Levels: $55,000, $53,000, $51,300
Support Levels: $47,000, $45,000, $43,000
BTC/USD Daily ChartOn Thursday, the recovery of the BTC/USD pair ended at the $50,844/$50,000 zone. The lead crypto pair failed to pass these levels after making three attempts. Meanwhile, the pair might find support in the moving average (MA 200), which has flattened out as a bounce zone. If the BTC/USD continues to decline, it would have to pass the support of the MA 200.
A move up might find resistance in the $48, 500/$50,000 levels before aiming at the $53,000 zone. A break below the daily support at $48,500 has put the bulls on the defensive. The latest decline is a sign of indecision as to whether the rebound would continue. A potential surge would encounter the $50,000 resistance for the uptrend to resume.
BTC/USD 4-Hour ChartAfter a brief rebound on December 4, the BTC/USD is trading lower on the 4-hour chart. The lower time frame, on the other hand, appears to have plenty of momentum, despite the recent decrease proving to be cautious. That seems contradictory, but the fact that it’s happening so close to the previous lows could be relevant.
Another failure to break the lows for the bears could be due to fast weakening momentum, or a breakthrough could be due to much more. On the 4-hour chart, that would be a strong bullish signal that might generate some near-term upward momentum and lead to a bigger surge past the $50,000 psychological zone.
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