Weekly BTC-USD(6th December)

Extreme fear sentiments dominated in the latter part of this week as bears started to command the whole Crypto ecosystem. The total market cap plunged by more than 10% from the high of 2.71 trillion to close the week at 2.27 trillion. With the news flowing in about the new COVID strain, both the traditional and crypto markets plummeted heavily. BTC witnessed a massive dump which also resulted in huge liquidations and closed the week with a ~14% decline and formed a big bearish weekly candlestick. At the time of writing, BTC is trading slightly below $49K.

On the Daily TF, BTC is now trading below its 200-DEMA and has broken down its crucial support level of $50K which depicts that the bull party is currently over and bears have taken the charge. BTC made a low of $42,333 but bulls tried to cover their tracks and recovered more than 12% from its lower levels.

Key Levels to watch out for:-

Support 1- $46,200
Support 2- $42,000

Resistance 1- $51,000
Resistance 2- $53,000

Momentum:- Daily RSI indicator has now dipped to 30 which suggests it is reaching its oversold zone and short term pullbacks to the higher side can be expected from time to time.
Weekly MACD is also giving negative crossover, suggesting the overall bullish trend structure is broken now and further selling pressure can be expected in the coming weeks.


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