Bitcoin price was stuck in a tight trading range, bullish sentiment to return this month?
Bitcoin price momentum is improving, limiting further declines between the $53,000-$55,000 support range. Even so, BTC has been stuck in a tight trading range between $55,000 and $58,000, as some analysts expect bullish sentiment to return this month due to positive seasonal trends. At the time of writing, BTC is changing hands at $57,065.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price range-bound between $55,000 support and $60,000 resistance
Buyers will need to make a decisive move above the $60,000 resistance level to gain their upside target towards the all-time high price near $69,000. The Bitcoin Fear & Greed Index entered “Extreme Fear” territory during last week’s sell-off. The index has been at the lowest level since late September, which preceded a BTC price bounce. Additionally, technical indicators are starting to rise from oversold levels as price pullbacks remain limited. At the moment, the indicator is showing “32” – Fear.
Crypto Fear & Greed Index as of Dec 2 | Source: Alternative.me
For now, BTC is trading in a tight range and has been roughly flat over the past week. The Relative Strength Index (RSI) on the daily chart is rising from the oversold levels of last week, which typically precedes a price bounce. Support remains intact given the upward-sloping, 100-day moving average. This indicates a positive intermediate-term trend, which could encourage additional buying on pullbacks.
Bitcoin briefly dropped below $57,000 during U.S. trading hours on Wednesday after news broke that health officials in the country confirmed the first case of the new coronavirus variant, Omicron, in California. At the time of publication, the largest cryptocurrency by market capitalization was trading just above $57,000 but still down for the day. The drop wiped out bitcoin’s earlier gains when it increased above $59,000 from a low of roughly $55,920 a day ago.
Ether also retreated, down to about $4,575 from as high as $4,782.40, ending its four-day winning streak. But a few other layer 1 blockchain tokens remained in the green on Wednesday, including polygon (MATIC), terra (LUNA), and Solana (SOL).
Most digital assets in the market ended the day lower. The overall cryptocurrency market cap now stands at $2.615 trillion, and Bitcoin’s Dominance rate is 41.1%.
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