Long-term momentum is starting to fade, limit gains this month as Bitcoin price falls below $57,000
Bitcoin price continues to trade in a narrow range and has been almost flat over the past 24 hours. The daily trading volume of the oldest cryptocurrency on centralized exchanges also decreased. At the time of writing, BTC is changing hands at $56,481.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price struggles near resistance
After last month’s decline, Bitcoin continues to stabilize above the $53,000 support level. However, there appears to be a stalemate between buyers and sellers because the cryptocurrency has been roughly flat over the past 24 hours. Resistance is seen at around $60,000, which has capped upside moves over the past week.
BTC was trading around $56,400 at press time and is down about 4% over the past week. The short-term downtrend in BTC is defined by a series of lower price highs since Nov. 10, as seen in the chart above. Recently, oversold signals appeared on the charts, encouraging short-term buying from the $53,00 support level. A decisive break above $60,000 would reverse the short-term downtrend.
Still, there is substantial overhead resistance between $60,000 and $65,000, which could limit price gains this month.
“Bitcoin’s exchange inflows have outpaced outflows significantly, as FUD combined with a jump in COVID19 concerns is causing traders to consider selling funds. On Wednesday, there were 10,242 more BTC moving on to exchanges vs. moving off exchanges”, Santiment reported.
Some analysts are concerned that rising leverage in the Bitcoin futures market could precede a near-term price drop, while others expect the current trading range to result in further upside. CryptoQuant analysts also pointed to the slower pace of whales, or large buyers, buying as a cautious market signal.
The second-largest cryptocurrency by market capitalization, Ether fell slightly but remained in the $4,500-$4,600 range. Most digital assets in the market ended the day higher. The overall cryptocurrency market cap now stands at $2.596 trillion, and Bitcoin’s Dominance rate is 41.1%.
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