Bitcoin has now rejected multiple times from $87.8k (Monday Low), with every recent 4 hour candle closing below this. This opens up the path to a retest in the $85k area next, which would only be invalidated with a strong reclaim of $88.6k (Weekly Open.)
We can expect a couple of days of lower volume because of the holiday period, but I will be looking for both shorts and longs from key levels if we get them. We have US job data due out today which would be the most likely cause of any volatility before Christmas Day.
Yesterday Bitcoin saw another aggressive rejection from $90.3k (Monthly Open), which is the resistance zone we have been speaking about for the past week. This morning, BTC lost $87.8k (Monday Low) on the 4hr chart which is not ideal for long positions. Until this level is reclaimed on the 4hr chart, we have to consider the realistic chance of a test below $86k. I will be looking for both long and short areas of interest, but risk management remains key here. The Monday Range this week is 87,845 - 90.6k
Bitcoin opened the week right on the resistance level of $88.6k, but we have since seen acceptance above this level. This is the first area where we would want to see a positive reaction from, on a retest, if we are going to see upside continuation on BTC.
$90.3k is still likely to be the resistance area as it is the Monthly Open and previous 4hr resistance. A flip of this and we will likely see Bitcoin try to reclaim $93.5k (Yearly Open.) Watching the Monday range develop for now... many opportunities coming!
At the time of wiriting Bitcoin is attempting to break from the 4hr downtrend (orange line). As we head towards the end of the weekend we are seeing the usual increase in volatility, and with some added strength BTC could test $90k before the end of the day. However, we must be cautious, as recent history tells us that Sunday pumps have often be met with a dump at the start of the trading week. I will be looking for further confirmations over the coming hours.
What we have: ✅ Price above the lower descending channel border on the daily chart ✅ Recovery setup looking favorable ✅ Volume surge confirming strength
Bitcoin is now trading around $88k (Weekly Open) so other that a few days of volatility this week, the price has not moved anywhere. The orange downtrend continues to give strong resistance, with multiple 4hr candles rejecting from this over the past 10 days. As usual, we can expect a low volume Saturday, but if this downtrend is broken then we could see BTC push towards $90k heading into the weekly close. For now I am being patient, but will be watching for a break of key levels.