Bitcoin (BTC) Slips Toward Old Ground: Can Bulls Defend Crucial Support Zones?
- Bitcoin is currently hovering around the $87.2K level.
- BTC’s daily trading volume has surged by over 62%.
As of December 16, the crypto market continues to linger within the bearish pool, putting the digital assets in an uncertain state. The price movements are slipping steeply down, revisiting the crucial support. Meanwhile, Bitcoin (BTC), the largest asset, has faced multiple rejections after a series of recovery attempts.
Bitcoin has likely lost a modest 2.76% and the asset opened the day trading at around a high of $89,849.37. With the bears taking charge of the BTC market, the downtrend has triggered it to visit a bottom at $85,304.08. Upon the bears gaining more traction, the price may lose all the recently acquired momentum.
As of this writing, Bitcoin is trading in the $87,220 range, and its market cap is now at $1.74 trillion. The daily trading volume has increased by over 62.74%, reaching the $48.01 billion zone. According to the Coinglass data, the market has experienced an event of liquidation of $194.60 million worth of Bitcoin in the last 24 hours.
Is Bitcoin Headed for Another Drop, or Is a Rebound Near?
The BTC/USDT trading pair shows that the Moving Average Convergence Divergence (MACD) line has crossed beneath the signal line, and both are below the zero line. This crossover implies a strong downtrend. The ongoing price action is weak, and the downside pressure is likely to persist.
BTC chart (Source: TradingView)
Besides, the Chaikin Money Flow (CMF) indicator is positioned at -0.10, which conveys moderate capital outflows into the asset. Notably, the selling pressure is present, hinting at distribution rather than accumulation in the Bitcoin market. A rise in value could only renew the buying interest.
The daily Relative Strength Index (RSI) found at 39.24 suggests that BTC is leaning bearish, but not yet in the oversold territory. A move above the 50 would improve strength, while a drop to 30 hints at growing bearish momentum. Bitcoin’s Bull Bear Power (BBP) reading of -2,161.22 indicates strong dominance of the bears. Moreover, this reflects intense downside pressure, and the market remains highly vulnerable until the buying strength begins to recover.
The Bitcoin price pattern is painted in red, and it could find its crucial support range at around $87,104. Additional losses might apply more pressure on the downside, waking up the death cross to take place, and gradually driving the asset’s price below the $86,911 mark.
On the flip side, assuming the asset turns the momentum green, the price might jump to the $87,352 resistance level. A sturdy correction on the upside could trigger the emergence of the golden cross, and the bulls would send the Bitcoin price toward $87,475 or even higher.
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