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Bitcoin is Resting on a Crucial Support Level; Here’s What Analysts are Saying

Published

2 Wochen ago

on



  • Bitcoin and the entire crypto market stalled following the decline seen yesterday afternoon, with bull stepping up and slowing the descent
  • This has marked a continuation of the bear-favoring trend seen throughout the week, as the cryptocurrency has been facing tremendous selling pressure
  • This all began when BTC first broke below $19,000, as this has long been a pivotal level for the cryptocurrency
  • Where the crypto trends in the mid-term should depend largely on where the aggregated market heads next
  • One trader is now noting that a move up towards $18,1000 will likely take place in the near-term
  • He adds that this is a resistance level, and that a break above this is required for it to see any reversal

Bitcoin and the entire cryptocurrency market have not seen too much upwards momentum as of late.

The strong uptrend that guided the market higher over the past couple of months has all but disappeared, as bears are now trying to take control. This weakness has come about due to the crypto’s inability to break above its previously set all-time highs.

One trader is now noting that the cryptocurrency could be on the cusp of seeing a rebound, but there’s a key level that it must first break above.

Bitcoin Struggles to Gain Momentum as Selling Pressure Mounts

At the time of writing, Bitcoin is trading down just under 2% at its current price of $17,900. This is around the price at which it has been trading throughout the past few days.

Where the entire market trends in the mid-term will depend largely on $18,000, as the crypto is close to testing this previous support level.

It remains unclear as to how strong the selling pressure at this level will end up being.

Analyst: BTC is Poised to See a Potential Reversal If It Can Break $18,100 

While sharing his thoughts on Bitcoin’s present technical outlook, one analyst explained that Bitcoin is currently resting atop a key support level that could help it move higher in the near-term.

He also believes that $18,100 is a key level that needs to be surmounted.

“BTC LTF Analysis: Currently resting at support, these are my thoughts. Likely we could see a move back towards $18,100 to confirm it as resistance, needs to see a strong S/R flip of that level to get excited. Currently flat and watching. Shorting below $17,600 is not the play.”

Image Courtesy of Cactus. Source: BTCUSD on TradingView.

The coming few days should offer insight into Bitcoin’s reaction to these key levels. A break above them could give room for it to see a rebound towards $19,000 as the weekly close approaches.

Featured image from Unsplash.
Charts from TradingView.





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Bitcoin

‘Bullish year ahead’ — Bitcoin primed for Q1 2021 gains, strength index suggests

Published

3 Minuten ago

on

Dezember 29, 2020

By


The monthly relative strength index (RSI) of Bitcoin (BTC) shows the dominant cryptocurrency is primed for another rally.

Is 2021 an ideal time for a Bitcoin rally?

The RSI is a momentum indicator that measures whether an asset is overbought or oversold. When the RSI surpasses 75, it signals the asset is overbought, and when it drops below 30, it means the asset is oversold.

A pseudonymous trader known as “Crypto Capo” noted that the monthly RSI of Bitcoin is set to close above 80. Historically, when this has happened, BTC has saw a strong rally afterward.

Although the monthly RSI of Bitcoin is above 80, which is technically oversold, BTC’s RSI tends to become oversold for prolonged periods during a bull cycle.

The monthly RSI of Bitcoin. Source: Crypto Capo

Hence, traders often refer to an oversold RSI on a high time frame chart, like the monthly candle chart, to forecast an extended rally in the short term to medium term. The trader said:

“Monthly candle is about to close above 80. When this happens, bullish trend continues, with an avg. return of 1010.87%. Each cycle is shorter.”

However, the trader emphasized that one indicator cannot accurately predict the price cycle of Bitcoin. Crypto Capo explained that the combination of a few indicators could serve as guidance for the future. He wrote:

“You cannot base a prediction on an indicator. What we do is combining several methods to have a guideline for the future, to see what is more likely. But in the end, we adapt to what the price does in the present.”

“Bullish year ahead”

Traders have differing perspectives on where Bitcoin is headed in 2021, but most traders remain overwhelmingly bullish.

Cointelegraph Markets analyst Michael van de Poppe said he anticipates Bitcoin to reach $65,000 to $85,000 by next year’s end. He stated:

“I’ve got to revise my view on the potential level of $BTC at the end of 2021. Through this recent surge, I’m expecting it to be between $65,000-85,000 at the end of 2021. Bullish year ahead.”

Meanwhile, the options market is pricing in a 22% chance of Bitcoin achieving $120,000 by next year, which could also serve as a potential guideline on where BTC is heading in 2021.

In the short-term, however, some traders are cautious in entering leveraged positions. A pseudonymous trader known as “TheBoot” said the ideal scenario is to wait for Bitcoin to consolidate at $25,000 or enter after the next price upsurge. The trader explained:

“No rush to enter leveraged trades on $btc right here imo. Best would be to wait and long low 25k or even mid 24k. Alternatively, wait for the next leg up and then a dip from there.”

Cointelegraph previously reported that whales have been buying Bitcoin more aggressively since Christmas, which could buoy the mid-term bull case for BTC entering into 2021.