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A rapid revival from one-week minimums observed today might have helped Bitcoin to dodge a bigger sell-off, although the bulls haven’t been defeated yet.
The number one crypto asset by market capitalization managed to establish a bearish lower-high pattern at $4,400 the previous week and concluded below $4,000 yesterday. The given outcomes confirmed the end of the corrective rebound.
Therefore, today Bitcoin appeared to be on the defensive, with prices reaching a one-week minimum of $3,730, before rapidly recovering to $4,000.
The sudden revival from one-week minimums probably shows that sellers don’t want to step in at current levels and might be exhausted, having pushed the crypto asset down by over 30% in November.
A short-term bullish reversal is anticipated to be confirmed just above the new maximum of $4,410. However, on the day, the leading digital coin fluctuated to $3,955.
Bitcoin struggled to conclude above the 10-day exponential moving average for four days in a row before slumping below the minimum of November 30 - $3,861 yesterday.
Bitcoin’s break below that major support level actually confirmed the end of the oversold condition. Moreover, the 5- as well as 10-day exponential moving averages keep going down in favor of the bears.
As follows from this, the indicators are definitely indicating the downside. On the contrary, it might change on the condition Bitcoin manages to settle at a higher-lows as well as higher-highs pattern with a confident move above $4,410, which happens to be a November 29 maximum.
Over on the hourly graph, Bitcoin’s revival from seven-day minimums has set a bullish divergence of the relative strength index. As follows from this, Bitcoin might face a diving channel breakout in the next several hours.
If it is confirmed, the breakout will undoubtedly welcome another level, which is $4,410.
During the daily press briefing of Andres Manuel Lopez Obrador, it was announced that Mexico will receive 1.4 million doses of the vaccine by the end of January. Is that optimistic enough for the peso?
The US unemployment claims are announced on Thursday at 15:30 MT time.
The Canadian monthly GDP is announced on Wednesday at 15:30 MT time.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
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