Bitcoin price (BTC) remains lackluster around $92,500 as traders seek more clues to defend the weekly gains early Friday. In doing so, the cryptocurrency major traces other financial assets amid a lack of major data/events, while also cheering the softer U.S. Dollar.
Despite the latest inaction, the BTC looks set for a weekly gain, with eyes on the first positive month in three, even as the yearly performance remains modestly negative.
That said, Bitcoin price approaches a key technical hhurdle,backed by upbeat inflows to the U.S. spot Bitcoin Exchange-Traded Fund (ETF) and the softer U.S. Dollar.
As per the latest U.S. spot ETF data from the SoSoValue, the Bitcoin (BTC) spot ETFs faced the first daily outflow in three on Thursday, but faces the biggest weekly inflow since late October worth $237.44 million by the press time.
Meanwhile, the U.S. Dollar Index (DXY) remains pressured around 98.30, its lowest level since mid-October, amid a three-week downtrend.
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Notably, the BTC’s latest inaction also hampers the trading volume, even as the market capitalization (market cap) edges higher, which in turn suggests a gradual continuation of the current run-up in the Bitcoin price. According to Santiment, Bitcoin’s daily trading volume eases for the fourth consecutive day to $58.31 billion, while the market cap remains modestly positive around the weekly high, close to $1.84 trillion by press time.
On a technical side, the Bitcoin price struggles to keep the weekly gains. However, the quote defends its late November recovery from an eight-month-old ascending support line, and pokes the 61.8% Fibonacci retracement level of its April-October rise, also known as the “Golden Fibonacci Ratio”, to keep buyers hopeful.
Let’s dig into the technical analysis of Bitcoin for further clarity!
Bitcoin Price: Daily Chart Lures BTC Buyers
The Bitcoin’s early-week failure to cross the 61.8% Fibonacci retracement level, also known as the “Golden Fibonacci Ratio”, close to $94,250, isn’t a bearish signal for the traders as long as the price stays beyond the ascending support line from April, close to $84,100 by the press time.
That said, upbeat conditions of the 14-day Relative Strength Index (RSI), recovering from the 30.00 oversold limit, and bullish signals from the Moving Average Convergence Divergence (MACD) momentum indicator (green histograms), lure the buyers.
Meanwhile, BTC’s first “Death Cross” since January 2022, a bearish moving average crossover wherein the 50-day Exponential Moving Average (EMA) crosses the 200-day EMA from above, pokes the buyers.
Hence, Bitcoin price needs to provide a daily closing beyond the 61.8% Fibonacci retracement level near $94,250 to tighten the leash.
Beyond that, the 50-day EMA of $96,480 and a seven-month-old previous support line, now resistance near the $98,000, could test the BTC recovery before directing buyers to the $100K.
In a case where the Bitcoin price remains firmer past $100K, the 200-day EMA of $103,500 could test the BTC bulls before giving them control.
Alternatively, the 78.6% Fibonacci retracement level of $85,500, and an ascending support line from April, near $84,100, are immediate support levels for the sellers to watch.
Below that, November’s low of $80,537 will be a decisive level to follow, as a downside break of the same could direct prices to April’s yearly low of $74,434.
Bitcoin Price: Four-Hour Chart Highlights $97,300
On the four-hour chart, Bitcoin price jostles with the 200-bar EMA surrounding $93,700, backed by upside RSI and MACD conditions, which in turn suggests the quote’s likely run-up beyond the immediate EMA Resistance.
However, a downward-sloping trendline resistance from early October, close to $97,300, appears to be a crucial short-term hurdle for the BTC bulls to overcome before taking control and targeting the daily chart’s higher levels.
On the flip side, a three-week-old ascending support line near $87,500 puts a floor under the Bitcoin price, a break of which could direct the sellers toward the monthly low of $83,814 and November’s bottom of $80,537 before the deeper levels discussed on the daily chart.
