Bitcoin (BTC) is trading higher this Tuesday (24), reclaiming the US$ 96 thousand level as support after rising more than 2% on the day.
With this, the asset has once again excited traders and investors who are betting on new price jumps. Will Bitcoin be able to provide a merry Christmas for its enthusiasts?
Bitcoin finds support
Analysis of the daily chart shows that Bitcoin started its current small bounce by forming a bottom at $93,000. Performing a Fibonacci retracement of the cryptocurrency’s last major bullish move shows that this bottom was formed very close to the 0.382 level.
As you can see in the image below, this retracement level has already acted as support and the start of new jumps on three occasions in recent weeks.
Bitcoin (BTC) Chart on TradingView
As such, it is possible that something similar could happen now. In this case, BTC would head towards the 0.236 retracement level at $98,739.
However, some factors call this possibility into question. It is worth noting that the 9-day exponential moving average (blue) is below the 21-day EMA (orange). In addition, the current jump is accompanied by low volume, which shows that buyers are not very strong in the market.
In this case, if BTC resumes its downward movement of the last few days, its price could fall to test the 0.5 Fibonacci retracement zone, close to US$ 88 thousand. Furthermore, it is important to note that the asset has been losing prominence in the market. The chart below shows that the cryptocurrency's dominance rate is falling.
Bitcoin Dominance Rate Chart (BTC.D) on TradingView
On the subject, Fernando Pereira, analyst at Bitget, highlights:
The current scenario shows a probability of decline in this chart for the rest of the year. We can therefore say that altcoins should perform better than Bitcoin in the next 7 days.
The article Bitcoin (BTC) Forecast: What to Expect on Christmas Eve? was first seen on BeInCrypto Brazil.
