Bitcoin Now Likely to Revisit $6Ks After Failing to Break Resistance

Bitcoin (BTC) closed the week at $7,385, which represented a 1.71% reduction in valuation. The lows for the week were some 4.5% lower at $7,053. But a strong close meant that Bitcoin maintained the $7K handle throughout the week.

Looking at performance relative to its peers, Ether (ETH) and XRP both outperformed Bitcoin last week against the United States dollar, which is counter-trend to what has been seen in recent weeks. BCH and BSV have also both notably recorded double-digit gains.

As a result, BTC dominance fell around half a percent to a little over 68%. Bitcoin dominance peaked at 71% in September 2019 but is still up 33% for the year, illustrating the poor year for the alternative cryptocurrencies.

Cryptocurrency market 7-day view. Source: Coin360

Cryptocurrency market 7-day view. Source: Coin360

1-week chart

Bitcoin has started the new week down 1% at $7,300 having briefly broken $7,500 during late trading hours on Sunday. The weekly candle is that of a hanging man candlestick, which is found at the top of an uptrend and can be indicative of a reversal in price; and that’s ultimately what has been seen so far on Monday.

Price remains locked between the $6,400 and $7,600, which has been the case for the entire month of December, with strong buying interest and time spent below $7,000.

The highest volume node for the last 24 months on the visible profile volume range, or VPVR, is at the support of $6,400 and this will play an important role as losing this level could make way for a faster move to retest the 200-week moving average —currently around $5,000.

The 50 and 100-week moving averages remain crossed bullish, with the 50 week MA currently acting as resistance.

The $7,555 level is that of the monthly open and would be the target for the bulls to breach this week in order to close December with a bullish candle for the year. So this will be a key level to watch.

BTC USD Weekly chart. Source: TradingView

BTC USD Weekly chart. Source: TradingView

Overall, volume continues to decline as the price has been in a general downtrend, and this is considered as being a bullish divergence.

The weekly MACD continues to build the as yet unconfirmed bullish divergence, with the fifth consecutive week of higher lows on the histogram. But as the MACD is still below zero, and requires a cross with its signal line, it remains unconfirmed, but a positive sign nonetheless.

The RSI remains below 50, which is considered bearish. But it is showing a clear change in the momentum to the downside.

BTC USD Weekly chart. Source: TradingView

BTC USD Weekly chart. Source: TradingView

1-day chart

The one-day Bitcoin chart shows that price has had 4 attempts to break the $7,555 level during the month before being rejected.

Price action in $6,000s has been brief. Overall momentum is trending higher as can be seen in the MACD, which has trended higher for the whole month. But again, it remains below zero. So it has yet to have the key movi