December 16th, 2020 marked a historical day for Bitcoin. All the naysayers from 2017 onward vanished, including public figures such as Warren Buffet who claimed that he would short BTC for the long term all the way to Zero. Well, if his trading was where his mouth is, he would have lost a fortune. Today we take a closer look at the technicals, how BTC managed to break through its all-time high price, important areas to consider, and project potential price targets.
Bitcoin price broke All-Time Highs – A Bullseye for CryptoTicker
Not only are people happy from the break of Bitcoin’s previous all-time high price of USD 19,850, but breaking through the price of USD 20,000 was the most anticipated event of the year.
In fact, here at CryptoTicker, we had a spot on projection where we estimated the day when Bitcoin will break the USD 20k barrier. In that previous article, we laid out 3 potential scenarios when BTC will reach 20k, and scenario #2 was a bullseye.
Should you buy BTC RIGHT NOW?
It is always hard to correctly project and predict prices when they are in uncharted territories. In the case of Bitcoin, it is no exception. Currently, the price is seen shooting through the roof, aiming to break USD 23,000 with a current price at the time of writing of USD 22,610.
Now comes the obvious question: Should you FOMO and jump to buy BTC right now? And the answer won’t please you much and is NO. Why not? Simply because this week has been a very strong rally for BTC, and the current price is nearing USD 23,000, and that’s a jump of 21% in 7 days.
It is NOT advisable to buy big quantities of BTC right now for several reasons:
- Profit-taking will most likely take place
- Christmas is here, people will cash out and buy presents
- Chinese new year is right around the corner
- A jump of 21% in 7 days signals usually a price adjustment soon
Important levels to watch out
If you still decided to purchase BTC, here are important stop-loss levels to consider:
- USD 20,730: The price consolidated for a while around this area
- USD 20,000: The barrier between old and new prices
- USD 19,000: if prices plummet past the 20k barrier
As a price prediction level, we plot the extended Fibonacci retracement and find the following areas:
- USD 24,000 (short term)
- USD 26,000 (medium term)
- USD 30,000 (long term)
