On December 16, there was yet another historical moment for Bitcoin because this was the day when price established yet another all-time high since 2017. Yes, after 3 years price finally broke above the 20k USD, which implies a strong buying pressure for the BTC/USD in the long run.
Price has reached the 24k USD high and is currently consolidating near this resistance area. The RSI oscillator has already produced a bearish divergence, suggesting an incoming downside correction. The $24,000 seems to become a strong supply area, at least in the short term. As long as this resistance remains to be respected, the price of Bitcoin is likely to correct down.
The nearest and obvious key support is the previous all-time high, which is a $20,000 area. This support is confirmed by the 61.8% Fibonacci retracement level and corresponds with the uptrend trendline as well as 200 SMA and EMA. Based on Fibonacci cycles, the next cycle is expected to start at the end of this month, which could either be the end of the downside correction or the beginning of the downside correction as long as the resistance holds.
If consolidation gets extended, the BTC/USD should start moving down from the beginning of January. The following cycles will start on February 10, and this could be the moment when the BTC continues the long term uptrend. This is also the point in time when the 61.8% Fibs is crossing with the average-price uptrend trendline, which might be perfect timing for buyers.
Regarding the long-term uptrend continuation, it can only be the case upon daily break and close above the recently printed high. Then the short-term bearish outlook will be invalidated and BTC/USD should be expected to rise further, potentially towards the $30 or $40k psychological resistance.
Key support levels: 20000, 16000
Key resistance levels: 24000
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice
Price has reached the 24k USD high and is currently consolidating near this resistance area. The RSI oscillator has already produced a bearish divergence, suggesting an incoming downside correction. The $24,000 seems to become a strong supply area, at least in the short term. As long as this resistance remains to be respected, the price of Bitcoin is likely to correct down.
The nearest and obvious key support is the previous all-time high, which is a $20,000 area. This support is confirmed by the 61.8% Fibonacci retracement level and corresponds with the uptrend trendline as well as 200 SMA and EMA. Based on Fibonacci cycles, the next cycle is expected to start at the end of this month, which could either be the end of the downside correction or the beginning of the downside correction as long as the resistance holds.
If consolidation gets extended, the BTC/USD should start moving down from the beginning of January. The following cycles will start on February 10, and this could be the moment when the BTC continues the long term uptrend. This is also the point in time when the 61.8% Fibs is crossing with the average-price uptrend trendline, which might be perfect timing for buyers.
Regarding the long-term uptrend continuation, it can only be the case upon daily break and close above the recently printed high. Then the short-term bearish outlook will be invalidated and BTC/USD should be expected to rise further, potentially towards the $30 or $40k psychological resistance.
Key support levels: 20000, 16000
Key resistance levels: 24000
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis .
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice