Bitcoin Bulls Need to Hold Above $41,300 to Kick Off New Year on a Bullish Note
Throughout the week, Bitcoin faced selling pressure once again as it was rejected from the upper band within the channel movement observed since the beginning of December.
The cryptocurrency experienced a pullback from the $44,000 area during the previous week's upward trend, causing it to dip below the ongoing uptrend and lose momentum.
Although the current breakout hasn't resulted in a sharp decline, it suggests a prevailing belief that Bitcoin could sustain its upward trajectory.
Currently, our focus remains on Bitcoin's consolidation phase. Following sales from the upper band, levels near the middle band of the channel served as intermediate support throughout the week.
On the final trading day of the week, the $42,700 level, identified as a pivot point, appears to be transitioning from support to resistance.
Low trading volume in the last days of the year is limiting significant price movements. Nevertheless, it remains crucial to uphold the support line, which dipped to $42,500 during the week, to prevent a further increase in selling pressure.
Additionally, this region aligns with the 21-day EMA, acting as dynamic support in the recent short-term upward trend since October.
As Bitcoin moves below this dynamic support, a day's close below the 21-EMA may trigger the next move toward the lower band of the channel.
In case of continued selling pressure, the region corresponding to the 41,300 — 41,500 dollar line appears as a more critical support.
A possible pullback to this level could be decisive for BTC's new direction. A weekly close below the $ 41,300 level, which has been maintained throughout December, will increase the likelihood that Bitcoin will start the new year with a decline.
This could trigger the
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