Daily chart is starting to turn slighlty bearish

After establishing a new yearly high on 8th December 2023, Bitcoin has been struggling to move higher. In addition to that, technicals on the daily graph began to reflect the loss of bullish momentum and started to turn bearish. Simultaneously, this has been accompanied by an ongoing decline in the number of Bitcoin addresses with balances exceeding 100 BTC and 1,000 BTC (in the latter group, the decline is less pronounced, though). Besides that, Bitcoin’s market dominance has declined rapidly since around 6th December 2023. All these developments are slightly concerning and raise the odds of a significant correction. Nevertheless, our stance has not changed, and we will continue to observe the market from the sidelines.

Illustration 1.01

The picture above shows the daily chart of BTCUSD and RSI. The green and red arrows highlight the divergence between the price and RSI.

Illustration 1.02

Illustration 1.02 displays the daily chart of BTC.D (Bitcoin’s market dominance).

Illustration 1.03

Illustration 1.03 portrays the daily chart of BTCUSD and simple support/resistance levels derived from past peaks and troughs.

Technical analysis gauge
Daily time frame = Neutral
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.

Comment:

We apologize for the typo in the title; it should be "slightly."