It’s a very interesting week for Bitcoin traders and fans. The market had been on fire lately, but the price dip has sent chills down the spines of even veteran investors who were feeling exuberant until recently. Markets have been volatile as much as they can be in November/December time frame, which is just ahead to make sense.
The “bitcoin price” is a widely followed cryptocurrency with a market capitalization of over $200 billion. Analysts warn that possible downside wick could push BTC price as low as $44K.
Bitcoin (BTC) bears grabbed the upper hand on Dec. 28 and slammed the price of BTC below support around $48,000, delaying the year-end bounce that many crypto traders had planned for until 2022.
According to data from Cointelegraph Markets Pro and TradingView, a wave of selling broke through BTC support near $50,000 in the early morning, followed by a second wave in the early afternoon that plummeted the top cryptocurrency to a daily low of $47,318 before bulls were able to stop the bleeding.
4-hour chart of BTC/USDT. TradingView is the source of this information.
Here’s what a few market experts have to say about the causes for the recent drop and what to expect as 2021 draws to a conclusion.
Prior to the reversal, there was a negative RSI divergence.
Options trader and pseudonymous Twitter user John Wick, who shared the following chart illustrating a bearish “fake out” as the price of Bitcoin started to reverse, provided insight into the technical reasons for the year-end fall for BTC price.
4-hour chart of BTC/USDT. Twitter is the source of this information.
“We produced a double top with bearish RSI divergence plainly defined.” Take note of how the price action is rising as the RSI is falling. There was also a bearish Alpha Thrust & Squeeze ruse.”
A possible drop to $44,000 is possible.
The following graphic from market analyst and pseudonymous Twitter user Rekt Capital highlights Bitcoin’s persistent problems at the 21-week exponential moving average (EMA). The weekly chart demonstrates how tough it has been for BTC to break above the technical signal.
1 week chart of BTC/USD. Twitter is the source of this information.
The price movement for Bitcoin is comparable to a situation that happened in May, “where Bitcoin is undergoing a multi-week consolidation between the two bull market EMAs,” and the price might soon revisit the $44,000 level, according to Rekt Capital. He went on to say:
“Historically, during this red retest, BTC has executed downward wicks into the orange region, so there’s potential for another orange return.”
Bitcoin daily losses are above $4000 as the S&P 500 reaches its 69th all-time high in 2021.
I’m looking for a break over $52,000.
Analyst and pseudonymous Twitter user “Don Alt” suggested what traders should be looking for in the days and weeks ahead, posting the chart below, which shows that Bitcoin is in a “very straight downturn, for now.”
1 day chart of BTC/USD. Twitter is the source of this information.
With BTC continuing to trade in a range at these present levels, according to Don Alt, there isn’t much to watch. On the chart above, he is now looking for a clean break over the first red resistance zone, which is approximately $52,000. Don Alt went on to say:
“Above $52,000, the roaring bull market is back on. Above $60,000, the raging bull market is back on.” I’m going to seek for deep wicks and concentrate on other more fascinating things until one of those things occurs.”
The total value of all cryptocurrencies is currently $2.234 trillion, with Bitcoin commanding 40.3 percent of the market.
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
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The “bitcoin price cointelegraph” is an article about analysts warning that the possible downside wick could push BTC price as low as $44K.
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