Bitcoin (BTC) – Odds are still in bears’ favor despite the lack of impetus during the Christmas weekend

Bitcoin (BTC) – Odds are still in bears’ favor despite the lack of impetus during the Christmas weekend

Posted on Sunday, December 25 2022 at 8:02 pm GMT+0000

Bitcoin (BTC) has been consolidating at the lower end of the medium-term downtrend heading into the festive season. Particularly, the crypto-king has been posting a series of tiny candlesticks just below the 20-day simple moving average, lacking a clear direction.

Trading volumes have been decreasing persistently since early November then thinned in an exceptional fashion over the Christmas weekend and will likely remain at low levels during the coming week. Meanwhile, the Bollinger bands converged, also hinting some stabilization in the market in the short run.

Moreover, momentum softened as reflected by the oscillators. Both the MACD and the RSI are following a horizontal path just below the equilibrium levels, suggesting that near-term risks remain tilted to the downside.

In the wake of an uptick in negative pressures, sellers will likely push though the lower-Bollinger band, and stage a fresh attack on the 15,600 – 15,400 support foundation shaped by November lows. A decisive close lower will see the sell-off intensifying towards the 14,000 area, ahead of the 12,500 barrier taken from August 2020 peak.

Otherwise, should the buyers start to fight back and overstep the 20-day simple moving average, they could immediately tackle the upper-Bollinger band and the neighboring 18,200 – 18,400 congested zone. A penetration of that section could provide direct access to the 20,000 zone. Further higher, the spotlight will turn to the early November peak at around 21,500.

Summarizing, although Bitcoin is currently lacking impetus, the odds are still in bears’ favor and unless the 15,600 – 15,400 base stands firm, the sell-off could exacerbate towards the 14,000 zone.