The Bitcoin (BTC) price prints a four-day winning streak as it crosses a 1.5-month-old resistance, up more than 1.0% intraday to $89,600 early Monday.
The crypto major’s latest gains could be linked to the market’s year-end consolidation and a pullback in the U.S. dollar, especially amid a light calendar. That said, the U.S. Dollar Index (DXY) stalls a three-day winning streak as the market braces for the first readings of the U.S. third-quarter (Q3) Gross Domestic Product (GDP) data amid a holiday-shortened week.
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Notably, BTC’s latest run-up also gains support from a three-day-high trading volume and a week’s high in the market capitalization (market cap), suggesting further advances in the Bitcoin price. According to Santiment, Bitcoin’s daily trading volume has increased for the third consecutive day to $26.56 billion. In comparison, the market cap has reached a one-week high of nearly $1.78 trillion at the latest.
Meanwhile, upbeat signals from the 14-day Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) momentum indicators also add strength to the bullish bias.
Given the resistance breakout, bullish momentum indicators, and upbeat trading volume, the Bitcoin price is likely to extend the latest run-up. However, buyers face numerous upside hurdles that could prevent them from reversing the yearly loss of approximately 6.0%.
Let’s read the details!
Bitcoin Price: Daily Chart Suggests Upside Momentum
The Bitcoin price extends the previous weekly rebound from an 8.5-month-old ascending support line and a 78.6% Fibonacci retracement level of its April-October rise as it crosses a downward-sloping resistance line from November 11, now immediate support around $88,900.
Notably, the RSI line is near the 50.00 neutral level and suggests a continuation of BTC’s latest rebound, especially when backed by bullish MACD signals (green histograms).
With the aforementioned bullish catalysts, BTC buyers look set to approach the 50-day Exponential Moving Average (EMA) hurdle surrounding $93,600.
However, the 61.8% Fibonacci retracement level around $94,250, also known as the “Golden Fibonacci Ratio,” and previous support from May, close to $98K, could challenge the Bitcoin buyers afterward.
It’s worth observing that the 200-day EMA, close to $102,000, appears to be a tough nut for Bitcoin buyers past $98K.
Alternatively, BTC’s pullback beneath $88,900 could defy the latest bullish breakout, directing the Bitcoin price toward the 78.6% Fibonacci ratio and an ascending trendline support from April, near $85,540 and $84,500, respectively.
Below that, a broad support zone from late March, between $81,500 and $80,500, will act as the final line of defense for BTC buyers, a break of which could direct the Bitcoin price toward April’s yearly low of $74,451.
Bitcoin Price: Four-Hour Chart Tests Sellers
The four-hour chart shows the Bitcoin price oscillating above the 23.6% Fibonacci Extension (FE) of its October-December moves, reversing the previous pullback from the 200-bar EMA.
Considering the upbeat RSI conditions, not overbought but beyond the 50.0 neutral level, as well as the bullish MACD signals (green histograms), the Bitcoin price is likely to extend the latest recovery toward the 200-bar EMA hurdle of $91,170.
However, a descending trendline from early October, close to $93,500, stands tall to challenge the BTC recovery moves before directing buyers to the higher levels discussed on the daily chart.
On the other hand, a downside break of the 23.6% FE support of $86,840 could guide Bitcoin sellers towards the 38.2% FE support of $82,260, and further downside could target the 50.0% and 61.8% FE levels of $78,730 and $75,350, respectively.
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