Bulls Under Pressure After Bitcoin Price Retreats from $4K

Bitcoin's recent forays into price territory above $4,000 have been beaten back, putting the bulls under pressure to regain momentum.

AccessTimeIconDec 26, 2018 at 1:20 p.m. UTC
Updated Sep 14, 2021 at 1:53 p.m. UTC

Bitcoin's recent forays into price territory above $4,000 have been beaten back over the holiday, putting the bulls under pressure to regain momentum.

The cryptocurrency had peaked to around $4,140 on Dec. 21, then to over $4,200 on Dec. 24, but dropped sharply back to around $3,720 early yesterday. A small bullish bounce since has now subsided and, at press time, bitcoin is changing hands at $3,762, as per CoinDesk data.

The world’s largest cryptocurrency by market capitalization now looks to be consolidating under a lower low, potentially building momentum for another push above $4,000 should buy pressure persist above two key resistance levels.

Daily chart


In our previous article, we discussed a possible visitation to resistance (R2 on chart) at $4,400, based on the measured Fibonacci extension taken on the daily chart. Bitcoin barely peaked out at $4,236 (R1), however, before it was rejected to lows not seen since Dec. 20, resulting in the formation of the temporary support.

Currently, it would appear that bitcoin doesn’t have the capacity to climb higher, as volume is falling with rising prices on the smaller time frames (1-hour chart, 30-min chart).

Pressure is now mounting for the bulls to make a play above $4,200 or risk conceding the short-term up-trend they had struggled hard to win.

2-hour chart


The bears will now be hoping to force prices down past the temporary support line and to close below $3,650.

The 2-hour volume bars are varied as price action continues to subside from the Dec. 24/25 sell-off, implying reactions are mixed and traders may begin to grow anxious at these levels. If so, another move down is most likely.


  • A short-term sell-off showed bitcoin’s temporary support lay at around $3,675 with a small bullish bounce triggered from that zone.
  • Bitcoin was rejected from around $4,200 on Dec. 24/25, signalling bullish exhaustion.
  • A drop below $3,650 would dash short/mid-term bullish hopes heading into the new year.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.