Bitcoin’s post-Christmas hangover has continued into the morning, with those hopeful that ‘the bottom is in’ losing hope by the hour.
The days leading up to Christmas could only be described as unreasonable euphoric, with every moonboy imaginable claiming that the bottom was in for Bitcoin (BTC) and that Santa’s set to deliver a V-shaped correction straight back to $6,000. Unsurprisingly, this has not been the case.
As has been the case with every Bitcoin relief rally throughout 2018, this recent pump was spurred on by a series of not particularly impressive green candles.
Seriously, though — does this daily chart inspire confidence?
The trend is your friend, ladies and gentlemen — and this trend is clearly down.
Supports and Resistances
Putting aside bearish sentiment, we can take a look at key support and resistance levels going forward.
By simple locating general points of contact around round numbers, we can make an accurate prediction as to where Bitcoin is going. At the time of this writing, a test of support at $3600 is likely. Below that, we can all but call $3200 the floor.Breaking through $3200 would spell disaster for BTC, plunging price once again to new yearly lows in an accelerated fashion. Click To Tweet
This scenario is becoming increasingly more likely as confidence in traditional markets is shaking — meaning crypto-averse individuals are less likely to participate in what is deemed an exceptionally high-risk market.
On the flip side, the most optimistic upside target in the near future would be $4400. This could be accomplished if the price decides to ‘Bart’ back up to $4000 and consolidate at that level. However, this scenario is not probable.
What do you think about the price of Bitcoin (BTC) this holiday season? Will we see a new yearly low before 2018 comes to a close? Let us know your thoughts in the comments below!
Images courtesy of TradingView.