- Bitcoin continues to trade in tight range above $7000.
- Despite modest rebound, BTC/USD looks to close week in red.
Bitcoin’s (BTC/USD) recovery attempt on Saturday lost its strength ahead of $7400 amid a lack of volume ahead of the new year break. After closing the day 0.7% higher on Saturday, the BTC/USD pair has gone into a consolidation phase on Sunday and was last seen moving sideways near $7300, where it closed the previous day. Despite the latest rebound, the pair is still down 2.7% on a weekly basis.
The Relative Strength Index (RSI) on the daily chart is staying flat near the 50 mark, suggesting that the pair could extend its sideways grind in the short-term. On the other hand, the fact that the pair was able to close the third day in a row above the 20-day moving average (MA) could be seen as a positive development but the absence of significant fundamental drivers and the choppy market activity are likely to keep the pair’s gains in check.
$7400 (Fibonacci 23.6% retracement of the October 26-December 18) aligns as the initial hurdle ahead of $7600 (static resistance) and $8000 (Fibonacci 38.2% retracement October 26-December 18 drop/psychological level). Supports could be seen at $7200 (20-day MA), $7000 (psychological level) and $6430 (December 18 low).