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Sunday, December 13, 2020

BTC/USD Overview + Possible Outcomes

BTC/USD Overview + Possible Outcomes

Bitcoin / U.S. dollar BITSTAMP:BTCUSD

Hello Traders, Investors, And TradingView Community,

In this week's BTC /USD analysis, we will be taking an in-depth look at the most recent technical formations, as well as look for the possible short-term price outcomes.

Overview

Bitcoin has had quite a volatile week experienced yet another steep decrease in price as a continuation of the bear retracement after the cryptocurrency couldn't post new all-time highs with confidence. However, the largest cryptocurrency by market cap has recovered from the decline in a matter of days, with its price passing $19,000 once again.

While Bitcoin's fundamentals only grew stronger as more and more institutional investors acknowledge it as a competitor to gold . This trend of large public companies investing in the best-known cryptocurrency has been seen throughout 2020, and many say that this is the sole reason for the current Bitcoin's run.

Technical factors

Bitcoin is currently in a steep upwards-facing trend, which brought its price from $17,600 all the way to $19,000. While the channel is way too steep to be considered a long-term option, Bitcoin has the option to follow it for a little bit more, possibly riding the way up to the $19,666 major resistance (and a previous all-time high on Bistamp). This will most likely be the pivot point for Bitcoin , which will decide if it will try to tackle the levels above $20,000 or stay below it and seek support near $19,100.

Likely Outcomes

Bitcoin's currently sending out very bullish signals, but we included a slightly bearish scenario as well, just to make sure all bases are covered.

1: In case Bitcoin heads further up, its price will most likely stop at the major pivot point , which sits at $19,666. This level is the all-time high from 2017, and is a major resistance level . From here, Bitcoin bulls will have to decide whether they will push towards the upside or remain below this level:

In case that the price moves further up, its next possible resistance level (there isn't much resistance above $20,000, so all possible resistance levels will be extensions of the Fib retracements) is most likely to be sitting at around $20,750.

In case the price decides to stay below $19,666, we can expect it to move down and look for support at $19,100 or $18,600 levels.

2: If Bitcoin breaks the ascending channel early and pushes towards the downside, its first strong support level is $19,100 (which it will inevitably break if it pushes down and breaks the channel) and then $18,600.

Entering any short trades could be quite risky at the moment due to the bullish momentum Bitcoin has gathered. However, trading above $20,000 is equally as risky as Bitcoin would be entering a zone with no set resistance and support levels. However, entering long trades is certainly a safer option at the moment.

Join us at our Forex Academy website and Facebook group for more Forex and Crypto news and education, as well as our FREE signal section and app where you can trade alongside us!

Information provided is only educational and should not be used to take action in the markets.



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