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Market Update: BTC Value Consolidates After Bouncing
BTC markets have produced sideways consolidatory price action in recent days, following bitcoin’s dramatic crash from almost $20,000 USD to test a low of approximately $11,000, and ensuing bounce up to the 0.618 retracement area. Most major altcoin markets have bounced in concert with BTC.
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Bitcoin Markets Bounce to Test 0.618 Retracement Area
In the immediate aftermath of Bitcoin’s week-long retracement of approximately 45%, the markets produced several days of choppy consolidation roughly between the $12,000 – $14,000 area. On the 26th of December, the BTC markets broke above $14,000 with strength, ramping up to test resistance at the 0.618% Fibonacci retracement area of approximately $16,500 when measuring the move from the all-time high to the local support area. As of this writing, bitcoin is currently trading at approximately $14,850 on Bitfinex, and $14,900 on Bitstamp, whilst the CBOE and CME futures markets are trading for around $14,900 and $14,800, following the BTC markets’ establishment of immediate support at the 0.382 area of roughly $13,000.
<figure id="attachment_95490" style="width: 421px" class="wp-caption aligncenter">
<figcaption class="wp-caption-text">Bitfinex – 1D – Bitcoin -BTC</figcaption>
Looking at the weekly chart, we can see that the stochastic RSI is roughly at the 50 threshold. On the daily chart, the stochastic RSI appears to be testing the 20 threshold.
<figure id="attachment_95491" style="width: 818px" class="wp-caption aligncenter">
<figcaption class="wp-caption-text">Daily Stochastic RSI for BTC on December 28</figcaption>
Bitcoin Cash has continued to hold correlation with BTC, producing a recent bounce that tested between the 0.5 and the 0.618 retracement areas when measuring from the recent high of nearly $4,100 to the local low of roughly $1,600 on Bitfinex. As of this writing, BCH is consolidating at roughly the $2500 area.
<figure id="attachment_95492" style="width: 400px" class="wp-caption aligncenter">
<figcaption class="wp-caption-text">Bitfinex – 1D – Bitcoin Cash-BCH</figcaption>
Altcoin Markets Consolidate After Establishing Lower Highs
<figure id="attachment_95494" style="width: 224px" class="wp-caption alignright">
<figcaption class="wp-caption-text">Bitfinex – 1D – Ripple -XRP</figcaption>
Many altcoin markets have maintained price relationship with BTC, with numerous markets appearing to produce lower highs after crashing from record highs and bouncing in concert with bitcoin. As of this writing, ETH is consolidating at approximately $710 after bouncing up to $765 area, LTC is consolidating at approximately $245 after bouncing up the to $285 area, Dash is trading for approximately $1080 after bouncing up to $1200, XMR is trading for roughly $345 after bouncing up to approximately $410, and ZEC is trading for around $465 after testing bouncing to test resistance at $600.
Ripple has continued to make new highs and defy the correlation between most leading altcoin markets and bitcoin, with XRP having produced gains of approximately 500% since the start of December. On the 1st of December, XRP was trading for below $0.25, before bouncing off the $0.20 area during the second week of December, and then ramping up to break above the prior all-time high of approximately $0.44 on December 13. Since then, Ripple has produced consistent bullish action, increasing in value by approximately 300% since breaking its preceding all-time high. As of this writing, XRP is currently trading above $1.35 after establishing a new record high of roughly $1.40.
Do you think that the bitcoin markets will ramp up to retest the $20,000 area, or do you think that we will see another leg down to perhaps test the $10,000 price zone? Share your thoughts in the comments section below!
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The post Market Update: BTC Value Consolidates After Bouncing appeared first on Bitcoin News.
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