Bitcoin (BTC) fell below $18,000 after a broad market correction driven by a wave of selling following a failed attempt to surpass the all-time high
The price of Bitcoin slipped below $18,000 once again after failing to break the $18,600 resistance on December 9. The battle to hold $18,000 is not over, but selling pressure has clearly increased over the past days, which is likely to test Bitcoin’s nearest support levels.
Sentiment has tilted toward selling since the price failed to register a new all-time high across most venues, even though some exchanges briefly recorded new highs. Despite the bearish mood, Bitcoin outperformed other major cryptocurrencies over the past seven days, losing -7.69% compared with ETH’s -9.41% and XRP’s -10.17%.
At the time of publication BTC was trading near $17,850, down 4.45% on the month.
BTC/USD
Bitcoin’s price continued to decline as the pullback from its highest levels plays out. With bears moving into the market, the price has gradually drifted down and even slipped under the $18,000 threshold. Low trading volume also appears to be preventing a stronger upward move.
While a drop below this level might look extremely bearish in the short term, the daily Fibonacci retracement suggests the fight between bulls and bears is likely not over. Bitcoin would need to close a daily candle below $17,875 to confirm a fully bearish outlook.
Although the short-term downtrend around Bitcoin is currently strong, even the worst-case scenario—BTC falling to $16,600—may not be entirely negative, as that level could provide the basis for a potential double-bottom formation on the daily chart.
BTC/USD daily chart. Source: TradingView
Technically, the RSI has dropped to neutral territory, while the Hash Ribbons indicator—one of the more historically profitable signals for BTC investors—has shown a buy signal since December 3.
It is also important to note a sizable CME gap is forming between $18,275 and $16,995.
BTC/USD 2-hour chart. Source: TradingView
On the 2-hour chart, Bitcoin appears to be forming a potential double-bottom pattern, as the short-term 61.8% Fibonacci retracement has held up reasonably well against selling pressure.