BTC Weekly Technical Analysis by Mako Sharks

Bitcoin kicks off its week at ! Christmas is approaching, along with uncertainty and tension over whether the holidays will bring Santa Claus or the Grinch, are we entering the new year above 90k or below 80k?! Bitcoin continues to consolidate and dance between the thin support and fatty resistance zone, with the Previous Week High (PWH)/Previous Week Low (PWL) range tightening, which gives us an indication that this is highly likely a “decision week.” 🧸 🕯 🚗

Bitcoin Bulls find themselves in an unfavorable position heading into Christmas! The inability to reclaim the daily 21SMA 89.7, or the 90k zone, continues to complicate the outlook, although a spark of Hopium still flickers in hearts of many. Ideally for the Bulls, any daily close above the daily 21SMA 89.7k and the Previous Week High (PWH) at 90.3k would potentially open the path toward the daily 55EMA 94.3k and the May low at 93.4k, which currently act as the main obstacle for any further expansion toward the weekly 55EMA 97k and the June low at 98.3k, a move that could also reflect as a potential “Santa rally.”

However, Bulls must under no circumstances lose the November low at 80.6k on a daily closing basis, as that would confirm that instead of Santa on his sleigh, the Grinch flies through the cryptoverse on the wings of the Nazgûl. If Bitcoin sweeps the Previous Week Low (PWL) at 84.4k during the week, it is crucial to avoid a daily close below it, as losing the PWL on a daily close almost certainly leads price into a test of the November low at 80.6k. 👼 🕯 😎

The Bears rub their paws week after week, and with good reason, as every attempt to push price back toward higher levels has been firmly rejected below the resistance zone, confirming that Nazgûl continue to aggressively defend rallies and forcing patience from market participants. Crucial for the Bears and the Nazgûl is securing any successful daily close below the November low at 80.6k, which would further weaken the current structure and open the gates to the 70k zone.

Ideally for the Bears, Bitcoin remains capped below the resistance zone formed by the daily 21SMA 89.7k, the PWH at 90.3k, and the daily 55EMA 94.3k with the May low at 93.4k, and to additionally lose the monthly 21SMA 87.5k as support. Any successful daily close below the PWL at 84.4k puts the November low at 80.6k into test and potentially opens the door for another decline. 🎩 😎 ⚰️