Bitcoin (BTC) maybe something more will start bullish to look like, but really only slightly. Because bitcoin is holding up slightly better than most today altcoins, dominance rises again. The total market capitalization of all cryptocurrencies fell to $2.3 trillion yesterday morning, then rose slightly again and has fluctuated between $2.35 and $2.38 trillion in recent hours. According to the fear & greed index however, there is still just as much fear in the market as yesterday.
Bitcoin price
From bitcoin price crashed last Saturday from $57,000 to $42,000 – $43,000 at most cryptocurrency-exchanges. On a handful of exchanges, the price even fell all the way towards $30,000.
Next, bitcoin was able to find support around USD 46,700, near the 200-day mark simple moving average (SMA). Bitcoin was able to recover after about $49,500 and touched close to $52,000 last Monday. However, bitcoin then went back into a downtrend, pushing its price back to $47,000 yesterday.
There is a small chance that bitcoin has made a double bottom and that the price is now making a trend reversal. However, that is far from certain. Bitcoin has fluctuated towards a slightly higher range from yesterday in the past 24 hours. That said, it’s only a very small upward move. If we zoom out, bitcoin is still in a downward trend. In particular, we see bitcoin trading in an increasingly narrow range again.
Upcoming BTC Volatility With Bullish Signals
There is therefore a good chance that we will see an increase in volatility again next week and perhaps a breakout in the price. That will depend somewhat on what the Federal Reserve announces about stimulus packages and how the stock markets react to them. In any case, several analysts report seeing bullish patterns:
#Bitcoin Supply in Profits is creating a Bullish Divergence after creating a Bearish Divergence at the $69,000 All Time High Top that followed with the recent crash: pic.twitter.com/Xy9GfBYWxq
— Matthew Hyland (@Parabolic_Matt) December 12, 2021
1/ I think #BTC is ready.
Suddenly all of my favorite leading indicators are lining up long & strong. ???? pic.twitter.com/A3433OmER5
– Cole Garner (@ColeGarnerXBT) December 12, 2021
Analysis firm Econoimetrics reports that the recent crash was on the verge of typical corrections for bitcoin. A deeper dip may have signaled the end of this bull market cycle. As long as it remains a typical correction, we may see a rapid recovery. Nevertheless, the accumulation at the current levels is disappointing, so that the supports are not very strong.
3/4 If this correction end up being typical it should be bought pretty fast and recover following the previous BTC drawdown trajectories in this range. pic.twitter.com/70bCZ6pkaW
— ecoinometrics (@ecoinometrics) December 12, 2021
The support around USD 47,000, close to the 200-day SMA, is still holding out for now. Should bitcoin fall through this, there is a chance that bitcoin plummets all the way back to $42,000, or even $40,000. If bitcoin is able to rise, resistance may be around the 200-day EMA near $50,000. The area between $53,000 and $55,000, where both 100-day MAs lie, may also provide resistance. According to whalemap, the next pass is around $56,000:
$ BTC S/R update according to Volume Profile:
$47k has been a good support lately but if we break it, our next strong support is at $40k.
On the other hand, if we are able to break $50.6k resistance the next one is all the way at $56k.
Let’s see which set up is going to play out! pic.twitter.com/hcmvmUbVln— whalemap (@whale_map) December 11, 2021
The last time #Bitcoin had 3 consecutive RED Two-Week candle closes was at the BOTTOM of the Bear Market; 3 years ago!!
Bitcoin has a week to flip Green to avoid this pic.twitter.com/bJPvp2UxyP
— Matthew Hyland (@Parabolic_Matt) December 12, 2021
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