Bitcoin (BTC) Price Analysis: Short-Term Profit-Taking Test of 42606 Target – 29 December 2023
Bitcoin (BTC/USD) experienced a decline in the Asian session, with the pair reaching as low as 42596.36. This drop tested the downside price objective resulting from recent selling pressure. More potential downside price objectives lie in the areas of 42358, 42052, and 41556. On the other hand, upside price objectives above the market include the 46105, 46487, and 49161 levels.
Downside Risks and Areas of Support
There are still lingering downside risks, with additional downside price objectives around the 40185 and 38773 areas. Recent profit-taking activity triggered Stops below the 41458.35 level, which was a downside price objective linked to previous selling pressure. Areas of support and potential buying pressure can be found at the 38998, 38028, 37321, and 35285 levels.
Technical Indicators on the Market
Traders are noticing that the 50-bar MA (4-hourly) is showing a bullish indication above the 100-bar MA (4-hourly) and the 200-bar MA (4-hourly). However, the 50-bar MA (hourly) is bearishly indicating below the 100-bar MA (hourly) and the 200-bar MA (hourly).
The price activity is closest to the 100-bar MA (4-hourly) at 42684.73 and the 50-bar MA (hourly) at 42828.59.
Technical Analysis Support and Resistance Levels
Technical support is expected around 37392.45, 36720.55, and 35633.00, with Stops anticipated below. On the other hand, technical resistance is expected at 46487.10, 47108.16, and 48240.00, with Stops expected above.
Technical Analysis on Charts
On the 4-hourly chart, SlowK is bearishly below SlowD, while MACD is bullishly above MACDAverage. On the 60-minute chart, SlowK is bearishly below SlowD, and MACD is also bearishly below MACDAverage.
Hot Take: Bitcoin (BTC) Experiences Short-Term Profit-Taking Test
Bitcoin (BTC) faced a short-term test as profit-taking activity caused a decline in its price. With potential downside risks and support areas to consider, traders are keeping a close eye on technical indicators on the market. The price action and resistance and support levels are key factors that will determine BTC’s movement in the near future. As the crypto market continues to evolve, staying updated on technical analysis and market trends becomes crucial for successful trading.
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