Bitcoin Analysis Dec 4: Will it Rise or Fall Back to $87,600?
The post Bitcoin Analysis Dec 4: Will it Rise or Fall Back to $87,600? appeared first on Coinpedia Fintech News
As Bitcoin is trying to hold above $95k, the market has started to fill with speculations of an upcoming correction. The moving average 100 at $91,700 is supporting the price and has prevented a fall below this price once. But, will it be able to hold it again or will Bitcoin go down to $87,600? Let’s analyse the charts and other metrics to find out.
Bitcoin Current Condition
According to CoinMarketCap data, BTC is up by 1.36% as compared to the last 24 hours and 1.51% for the last 7 days. This is not a good sign of bullish momentum because the largest crypto fell by 7.17% last week before closing at a 0.72% down from its previous week. Bitcoin even failed to get a good upward force starting this month. This worries traders and investors. On the other hand, the cryptocurrency is also losing its daily trading volume. At the time of writing, it is down by 2.67%.
After hitting a new all time high at $99,660, btc faced rejection causing it to decline to a bottom of $91,770. Being a support zone and presence of MA 100 prevented the further fall and bounced it back. However, the reduction in the strength was clearly visible as more and more doji candles started to form. Currency the price at $95,800 has support from MA 100 as well as MA 50 on a four hour chart. But will these two moving averages be able to handle the pressure, time will tell.
Technical Indicators Giving Warning
Following the trading volume, RSI has also fallen below 50. Currently it is at 47.04 — showing weakening of bullish power. On the other hand, the Average Directional Index also known as trend strength indicator is at level 15.57. This is a clear indication that BTC lacks power to keep up the uptrend.
Let’s have a look at the liquidity heat map that can give an idea of where liquidity is present. We can see there is a huge gap between the current price and the liquidity above this price. However, there are plenty of buy orders available under this price, signaling buyers want to price to take further correction.
Bitcoin quarterly returns data from Coinglass shows that BTC has given 51.04% returns to its investors in this quarter. The crypto liquidation data reveals that more long traders were liquidated in the last 24 hours. Over 161k traders lost over $405.21 million in funds.
Looking Ahead
Analysing all the technical sides it is clear that Bitcoin does not have enough strength to move towards $100k which everyone is waiting for a long time. It will have to wait until new liquidy enters the market and until then it might have to move in a consolidation zone. If the selling pressure rises due to the holiday season as traders take out profit, we might see a price drop. With large institutions supporting Bitcoin, we might see some big buyings that can push the price up. However, we can not deny the fact that the rise of selling pressure can also reject the price and force it back towards $87,600. Which side the price will move, we will have to wait and watch to know.
