$100,000 remains the key reference for bitcoin
Like gold, bitcoin retraced lower around the Fed’s latest meeting, which is a normal reaction as the outlook for monetary policy becomes less dovish. Bitcoin is arguably a bit less vulnerable than gold to higher rates because there are various ways for holders of transferable bitcoins, especially now that many coins are at or close to all-time highs. Participants in crypto markets view the likely policies of the incoming Republican government positively.
Bitcoin’s momentum has been lower in December which makes sense as the price approached the critical and long-awaited area of $100,000. Volume has also decreased somewhat compared to the peak around the middle of last month and there’s no longer such a strong overbought signal as there had been for most of November. The latest retracement from the 100% weekly Fibonacci extension was also expected since this was the stretch target since the middle of last month.
Given current strong sentiment, a move back below $90,000 seems unfavourable in the near future, but $100,000 could remain an important battleground. Now that the uptrend is clearly mature and participants seem inclined to buy more quickly during even relatively modest retracements, a retest of $108,000 seems likely in the next few weeks. However, traders should prepare for higher volatility during upcoming holidays.
This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.
Bitcoin’s momentum has been lower in December which makes sense as the price approached the critical and long-awaited area of $100,000. Volume has also decreased somewhat compared to the peak around the middle of last month and there’s no longer such a strong overbought signal as there had been for most of November. The latest retracement from the 100% weekly Fibonacci extension was also expected since this was the stretch target since the middle of last month.
Given current strong sentiment, a move back below $90,000 seems unfavourable in the near future, but $100,000 could remain an important battleground. Now that the uptrend is clearly mature and participants seem inclined to buy more quickly during even relatively modest retracements, a retest of $108,000 seems likely in the next few weeks. However, traders should prepare for higher volatility during upcoming holidays.
This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.
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