The Bitcoin (BTC) bulls are trying to start a Santa Claus rally by pushing the price above the psychological level of $100,000. However, higher levels may attract sellers, indicating that the bulls face significant resistance in their attempt to break through this milestone.
Technical Analysis
- The moving averages have completed a bearish crossover, and the Relative Strength Index (RSI) remains in the negative territory, indicating advantage to sellers.
- The price has been consolidating between $92,000 and $100,000 for several weeks, suggesting a lack of demand at lower levels.
Resistance Levels
- The immediate resistance level is around $102,000, where the bulls will face stiff resistance from bears.
- If the bulls break through this level, they will encounter significant resistance at $110,000 and then $120,000.
Support Levels
- The immediate support level is around $90,000, where the bulls will face strong buying pressure from investors looking to accumulate more Bitcoin.
- If the bears break through this level, they may target the next major support level at $80,000.
Market Sentiment
- The market sentiment remains bearish, with many investors expecting a further decline in the price of Bitcoin.
- However, there are also some bullish signs emerging, including an increase in buying activity and a rise in the number of investors accumulating more Bitcoin.
Other Cryptocurrencies
- Other cryptocurrencies such as Ethereum (ETH), Ripple (XRP), and Litecoin (LTC) have also been affected by the recent decline in the price of Bitcoin.
- However, some of these currencies may experience a bounce back if the bulls are able to break through their respective resistance levels.
Conclusion
The attempt by the BTC bulls to start a Santa Claus rally is facing significant resistance from bears. The market sentiment remains bearish, and there are still many uncertainties in the cryptocurrency market. Therefore, investors should exercise caution and conduct thorough research before making any investment decisions.
