Bulls Under Pressure After Bitcoin Price Retreats from $4K

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.

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.

Given its recent price action and a revisit to intra-day support levels seen at $3,675, bitcoin looks weakened, having fallen victim to an early holiday sell-off.

Bitcoin barely peaked out at $4,236 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.

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.

View 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.

Bitcoin image via Shutterstock; charts by Trading View.