Bitcoin Techncal Analysis: BTC Faces Selling Pressure At $34,500
Daily Bitcoin BTC Price Analysis
- The RSI in the daily chart is trending in the overbought zone.
- The 4-hour chart has flashed the sell signal in the TD sequential indicator.
Bitcoin has been nothing short of phenomenal over the last month. Since December 12, the premier cryptocurrency has jumped from $18,000 to $33,300. In the process, it flipped the 20-day SMA from resistance to support.
Bitcoin Flies High But Faces Moderate Resistance
The buyers have remained in control of the market for 8 straight days. During this time period, the price has jumped from $26,240 to $33,300. However, do note that the relative strength index (RSI) is presently in the overbought zone. This could indicate an upcoming price correction.
Image: BTC/USD daily chart
Looking at the 4-hour chart, we can see that BTC has faced a strong resistance barrier at the $34,500 level. The price has also flashed the sell signal in the form of a green-nine candlestick in the TD sequential indicator. The Moving Average Convergence Divergence (MACD) also shows that the bullish momentum is decreasing.
Image: BTC/USD 4-hour chart
Bitcoin Options On Derbit Reach $200,000
Bitcoin’s price has recently exploded from $20,000 to around $32,000 in just over a month. Deribit, a Bitcoin and Ethereum options exchange, appears to think that this surge merits offering traders the ability to bet on a rally to $200,000 by late December.
This supersedes the $160,000 option as most traders can bet the leading cryptocurrency will rise to. Even with Bitcoin’s impressive price movements, there have been no takers at any strike north of $80,000.
Key Price Levels To Watch
Everything indicators that the price is going to face a correction soon. If that does happen, the bulls will want the 20-bar SMA ($31,500) in the 4-hour timeframe to stay strong and stem any downflow. Following that, the price can target the $34,500 resistance again.
However, if the price breaks below the 20-bar, the buyers will want the 50-bar SMA ($29,200) to remain firm. A further break takes the price to the 20-day SMA ($26,300).