Source — Bitcoincharts.com
This week was the dip and recovery week for Bitcoin. The price movements gave a sigh of relief as the bulls look coming back to support from the bottom in the last 4 days. Bitcoin moved more than $1000 adding both upsides and downsides. The prices fell catastrophically where it tested support at $6560 and then reached a new month high where it tested resistance at $7880. The prices are expected to accelerate to a new high once they break the resistance at $7600 and $7700 resistance. The prices broke the $7300 and $7400 resistance and settled near $7600 mark for the rest of the week starting from Saturday. This breaking of resistance broke doors of more upperside gains for the traders as bulls were continuously holding their grounds.
However, there was a break below the 23.6% Fib retracement level of the upward wave from the $6,855 swing low to $7,676 high. The $7400 is still acting as a strong buy zone as it carries strong support. Breaking this support can take Bitcoin back to $7200 which can be seen from the 100-Simple Moving Average. Here it coincides with the 50 Fibonacci retracement level of the upward wave from the $6,855 swing low to $7,676 high. On the downside, it can go on a further decline near the $7000 region if it breaks the $7200 support also. On the upside, if bulls force a strong upthrust and successfully break the $7700/$7800 resistance, there is no stopping for Bitcoin to cross the $8000 mark and form a new resistance at $8200. But for now, the prices are consolidated near the $7400 mark and traders should be glad that they are not tightly packed. Hence, notable movements towards either of the direction are highly susceptible to appear next week. Traders typically look for a surge in volume to accompany the initial break above the breaking points (the supports), and instances are visible in the charts where tall peaks of volumes are responsible for bringing the bullish movements in the markets. Still, amidst a bleak outlook, the formation should be a welcome sign for believers in the largest cryptocurrency by market cap.
It is safe to claim that Bitcoin is still in its correction period as downfall in last two weeks (because of China’s panic reactions and Xi Jinping’s comments) wounded the markets on its knees and toes. If you squeeze the candlesticks to hourly, you will notice a rising wedge pattern forming in the last two days. This price is predicting the prices to touch $8000 in the next week. The Relative Strength Index appears to be coming out of the oversold region and staging back to nurturing the upside movements again. If the upward correction is sustained, Bitcoin is likely to push the reversal above $7,500 in the coming sessions. However, the danger of $7000 getting touched by the Bitcoin markets doesn’t appear very distant. The question here arises is for how long will the bulls sustain their strengths and help break new resistances on the upward movements — if at all.
The total cryptocurrency market cap touched the $210 billion but dropped back below $200 billion. Looking at the total cryptocurrency market cap 4-hours chart, there was a slow and steady rise above the $188.0B and $190.0B resistance levels. Ether has always shown the strongest correlation with Bitcoin in its entire history. The prices of ETH started showing recovery against USD as they fell close to $142 when BTC fell near $6700 mark. This week, the pair surpassed the $155 resistance area, but it struggled to gain momentum above $158.EOS price gained bullish momentum above the $2.5 resistance area. The price even broke the resistance $2.6 level and tested the resistance at $2.7. Although it is currently consolidating above the $2.6 level, it could rise back towards the $2.85 level in the coming weeks. For Bitcoin Cash, it tested the $225 resistance area and it is currently consolidating near the $220 pivot level.
Tron price made a nice upward move above the $0.0155 resistance level. However, TRX has to battle against a strong resistance near the $0.0160 and $0.0162 level. Binance coin (BNB) is holding the $15.20 and $15.50 support levels. Still, it is struggling to gain momentum above the $16.00 and $16.20 resistance levels. If there is an upside break above the $16.20 resistance area, there are chances of a decent rise towards the $16.80 and $17.00 levels. The coming week is going to be a crucial week to decide the prices of all the top 100 cryptocurrencies before the end of the year. New year is always seen in markets with new expectations and potential. The prices need to reach back to their monthly highs (at least) to give the new year a fresh start from a good position.