Cryptocurrency market review 24 December

We are starting this year’s last working week with a Bitcoin trading review. The cryptocurrency market’s recovery became the past week’s main news. Market capitalization grew substantially and at the moment...

We are starting this year’s last working week with a Bitcoin trading review. The cryptocurrency market’s recovery became the past week’s main news. Market capitalization grew substantially and at the moment of writing is $146 billion. Bitcoin Cash (BCH) went up by 150% and regained the 4th place. Ethereum grew by 50% and is currently priced at $148. Analysts continue to discuss whether Bitcoin has hit the bottom; the majority, however, tend to believe that the price will fall further.

The price has failed to overcome the $4,300 level since our previous review and at the weekend the market’s main coin traded in the $3,900 — $4,200 range. At the same time, the indicators have unloaded well.

24 December started with a sharp rise towards $4,380 with the coin currently trading above $4,300. The moving averages are above the price and looking upwards which is a buy signal The MACD indicator is also in the buy zone. $4,400 acts as the first resistance level whose overcoming will pave the way to $4,500. The nearest support is at $4,300. Below it are $4,200, $4040, $3,900 and a strong support at $3,800.

4-hour chart

On the 4-hour timeframe the moving averages have formed a buy signal — the EMA50 crossed the EMA100 from bottom to top. The EMA100 coincides with the strong support level, thus strengthening it even more at $3,800-3,790. The MACD indicator in the buy area. Everything suggests further growth and the first target on the way up is $4,400.

On the day timeframe, the EMA50 at $4,454 acts as a resistance, but before that it is necessary to overcome $4,400. The MACD indicator tries to enter the buy zone.

Important news has come from the U.S.: cryptocurrencies may be excluded from the securities laws. A pertinent bill has been submitted to the U.S. Congress. The bill defines «digital tokens» and states that the norms of the law on securities are not applicable to cryptocurrencies. Digital tokens are defined asl «digital units» that may be created as a result of mining or pre-mining. The document also carries provisions on taxation, use and sale of cryptocurrencies. Specifically, the legislators propose not to tax profits from crypto asset transactions not exceeding $600.

The year end looks very interesting for traders. On the one hand, we see strong levels below and above, from which we can trade. On the other hand, despite the current growth, the risk to go to $ 3,700 remains (keep in mind our theory described in the previous review).

We whish you all an excellent week and profit!