While prices remain near an all-time high, Bitcoin is showing a weaker price by the day. Everyone was eying this dominant cryptocurrency, awaiting the long-awaited price of USD 20,000 before the end of the year, though chances are getting slimmer of strong price-action that creates a strong rally up. Today, major technicals are about to confirm a potential end of a strong uptrend. What are those technicals and why everything might change within hours?
Bitcoin Price Forecast – Technicals showing the END of a strong uptrend
If we were to summarize the last two months for Bitcoin, it would be done the following:
- November 2020: Massive price increase from USD 13,700 to the all-time high of USD 19,835
- December 2020: Price adjustment from the all-time high back to previous strong support levels of USD 17,650
There isn’t anything offsetting by the above price-actions, talking about “breathers” here at Cryptoticker was always a highly discussed topic. In fact, plotting the Fibonacci Retracement on the current BTC price chart in figure 1, we can clearly see a natural breather that would take not only hours but even days.
This above Fibonacci retracement is considered a very powerful technical standpoint, as its coordinates (specifically the 50% retracement level) coincides exactly with the previously plotted support level of USD 16,500.
Two scenarios currently come to play:
- The price reaches the 38.2% level and rebounds back, creating a sideways trend since the beginning of December 2020
- The price fails to rebound and drops further below the USD 17,000 psychological price
In fact, the price officially for the second day dips below the uptrend channel (figure 2).
Cryptocurrency Market Overview
In the last 24 hours, the whole cryptocurrency market was seen lower, adjusting further maybe with the US markets, specifically the S&P 500 which also happens to adjust from its current all-time high:
1- Bitcoin (BTC) : – 2.45 %
2- Ether (ETH) : – 3.42%
3- Ripple (XRP) : – 2.79 %
4- Tether (USDT) : 0 %
5- Bitcoin Cash (BCH) : – 1.70 % (surpassing Litecoin)
6- Litecoin (LTC): – 13.70 %
7- Chainlink (LINK) : – 5.91 %
8- Cardano (ADA) : – 5.11 %
9- Polkadot (DOT) : – 3.33 %
10- Binance Coin (BNB): – 2.90 %
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