Bitcoin Price Analysis | 26 December, 2024

The given chart is of the BTC/USDT trading pair on the 8-hour timeframe; hence, it shows rather clear price action, trend lines, and moving averages. Let's go through that systematically:

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Trend Analysis:

Ascending Channel: Price seems to be trading within an ascending channel clearly demarked by two blue trend lines. The trend lines, therefore, show a big uptrend and hence give a bullish momentum. For the time being, the price tests the lower boundary of this channel, which might work as support.

Projected Path: Yellow zigzag lines showing the forecasted price movement where price oscillates between the upper and lower bounds of the ascending channel. This projection highlights a continued consolidation within the channel before upside breakout.

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Moving Averages:

7, 25, and 99 MAs: The chart hosts the 7-period red, 25-period pink, and 99-period blue simple moving averages (SMAs).
The current price is trading below the 7 and 25 SMAs, which would indicate short-term bearish bias. However, it is approaching the 99 SMA, which tends to act as strong dynamic support during an uptrend.

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Support/Resistance:

Support: The lower blue trend line and the 99 SMA. If the price respects any of these levels, then the price will likely bounce upward in a continuation of the channel-bound movement.

Resistance: The blue trendline resistance level forms the upper most important resistance level. Breakouts above this could mean strong continuations higher for a bull.

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Volume Analysis:

The volume histogram shows fair activity and may indicate consolidation in price. Confirmation for a breakout or reversal could be given if volume were to increase around the boundaries of the channel.

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This chart illustrates that BTC is within an ascending channel and may require further consolidation before a breakout. For now, traders should observe the interaction with the lower trend line and the 99 SMA to see any signs of rebound. Failure below those levels could invalidate the structure seen in this chart in terms of being bullish, whereas continuous movement towards the upper boundary might lead to a breakout rally above $105,000.