As mentioned before and in our previous price analysis, the bearish momentum is far from being over.

Despite the bounce from $3700 to $3900, since it’s Nov.29 high ($4400) Bitcoin is creating lower lows (as seen on the hourly chart).

The current weekly bottom lies at $3630 (Bitstamp). Reaching there was followed by a nice bounce back above the $3800 level, touching the 50 days moving average line (the pink line on the 1-hour chart).

Looking at the 1-day & 1-hour charts

The short-term: The hourly chart’s Stochastic RSI is about to cross at the overbought area. This might indicate on a possible correction down.

From the bear side, the next support levels lie at $3800 and $3670, $3600, before getting to the yearly low’s area at $3500.

The mid-term: As can be observed on the daily BTC chart, the $3700 support line still holds, while the overall movement is bearish according to the orange marked descending trend-line.

From the bull side: the next resistance lies at the 50 days moving average (~$3850), descending trend-line at $3900. $4000 -$4050 resistance along with 200 days moving average (purple line).

The trading volume is getting higher from day to day, but still not as much as the past week’s.

The daily chart’s RSI indicator: The critical indicator is testing the support turned resistance RSI line for the fourth time during the past ten Breaking the above line could signal a short to mid-term bullish movement while failing from the 28.5 level is likely to send Bitcoin to look for new annual lows.

BitFinex’s open short positions have increased to their weekly high at 37.6K.

BTC/USD BitStamp 1-Hour chart

BTC/USD BitStamp 1-Day chart

Cryptocurrency charts by TradingView. Technical analysis tools by Coinigy.