FXOpen
Analysing Bitcoin price on 6th December, we:
→ noted that more likely Trump’s victory in the presidential election and his plans to create a strategic reserve dedicated to Bitcoin were the primary drivers of BTC/USD’s growth in November.
→ Identified two ascending channels (highlighted in blue and orange) that mapped the fluctuations within the upward trend, which pushed Bitcoin price to $100,000.
Over the weekend, President-elect Trump confirmed his intention to establish a strategic reserve dedicated to Bitcoin, propelling Bitcoin price to a new all-time high above $106,000.
Meanwhile, a technical analysis of the BTC/USD 4-hour chart reveals:
→ The price reached the upper boundary of the orange channel, which acted as resistance. The candle’s upper wick suggests potential selling pressure, indicating that major market participants might be taking advantage of the price surge to lock in returns.
→ Narrow-range fluctuations (marked with a blue oval) may indicate the position of the blue channel’s median line, while the RSI indicator is in an overbought zone.
Given these observations, we could suggest that the market is in a vulnerable position for a pullback — possibly toward the blue median line, where Bitcoin price might be more balanced for both buyers and sellers.
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*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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