Bitcoin eases off monthly highs, holds on to small daily gains above $4000

The BTC/USD pair advanced to its highest level since September 8 at $4482 during the European session before losing its momentum. Although the pair erased its gains, it reversed its course after setting its daily low at $4360 and was last seen trading at $4420, up $15 on the day.

According to the Wall Street Journal, Goldman Sachs Group Inc. is on its way to becoming the first blue-chip Wall Street firm to deal in the controversial digital currency market. "Goldman’s effort is in its early stages and may not proceed, the people said. The firm’s interest, though, could boost bitcoin’s standing among investors and fuel the debate," the WSJ wrote. Also reporting on that matter, CoinDesk author Stan Higgins reminded that beginning this summer, analysts at Goldman began predictive notes in the bitcoin market, with chief technician Sheba Jafari notably predicting bitcoin's climb past $4,800.

Despite this recent development, the trading action remained relatively subdued as investors are looking for the next catalyst. In the meantime, the greenback continues to gather strength against its peers amid heightened expectations of a December rate hike and makes it difficult for the pair to record sharp gains.

Technical outlook

The RSI indicator on the daily graph is moving sideways near the 60 mark, signaling a near-term neutral/bullish outlook. The immediate hurdle for the pair could be seen at $4480 (daily high) before $4700 (Sep. 8 high) and $5000 (psychological level). On the downside, supports align at $4000 (psychological level), $3650 (Sep. 25 low), $3435 (100-DMA).