Bitcoin (BTC) faces an uphill struggle to reignite its uptrend after its biggest one-day losses of 2023.
The largest cryptocurrency continues to claw back lost ground after falling to lows of $40,200 after the Dec. 10 weekly close, the latest data from Cointelegraph Markets Pro and TradingView shows.
BTC/USD 1-hour chart. Source: TradingView
With BTC price action taking a break from relentless gains — one which many argue was overdue — new key support and resistance levels are coming into play.
The coming days are already set to offer plenty of potential volatility triggers — United States macro data releases begin on Dec. 12, with the Federal Reserve interest rate decision and commentary from Chair Jerome Powell following a day later.
The stage is set for a showdown which may involve more than crypto markets.
Cointelegraph takes a look at some of the popular BTC price lines in the sand now on the radar for traders and analysts as Bitcoin narrowly preserves the $40,000 mark.
Bollinger Bands: BTC bounced “where it was supposed to”
While painful for late longs, the 7.5% BTC price dip which followed the weekly close offered a form of reset for frantic crypto markets.
#Bitcoin has now dropped 7.5% today, which would be the single biggest 1-day drop in 2023.
It has overtaken the drop in March during the banking collapse; -6.2%, bottomed out at $20,000.
Also dropped -7.2% in August when Bitcoin bottomed out at $26,000. pic.twitter.com/WFYiyURO3J
— James Van Straten (@jimmyvs24) December 11, 2023
This was needed, consensus agrees, as unchecked upside typically results in a violent reaction the longer it continues.
“Very overextended, so a pullback was due,” John Bollinger, creator of the Bollinger Bands volatility indicator, argued in a reaction on X (formerly Twitter).
“Stopped right were it was supposed to. That doesn’t happen too often. Now we look to see if support can hold.”BTC/USD 1-day chart with Bollinger Bands data. Source: John Bollinger/TrendSpider
Bollinger referred to Bollinger Bands data, with an accompanying chart showing, among other things, the forcefulness of the latest upside within the context…
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