Bitcoin price prediction – BTC to fall into a bearish grip if $18,000 gives way
- Bitcoin price prediction turns negative as BTC gradually loses ground
- The sharp correction in Bitcoin price is driving away investors and traders
- Lower highs on the hourly chart signal further correction
Bitcoin price prediction enters negative zone as BTC/USD barely holds $18,000
In the past two days, the Bitcoin price has been hovering around $18,100 level. The consistent zig-zag motion is causing fluctuations in price action and driving away day traders and investors alike. The uptrend on the daily charts is also under threat as the price can fall sharply in the absence of quick buying at initial support levels.
In 2018, similar inaction on the part of investors resulted in a sharp correction. However, the inclusion of institutional investors shows that the current bull run has inherent strength. Also, the repeated breakout beyond historical resistances has built a strong buy wall underneath the price action.
Besides institutional support, the price is also driven by fundamental factors including halving, derivatives, futures and more. The technical indicators are lining up well on the long-term weekly charts of Bitcoin price prediction.
Bitcoin price movement in the last 24 hours – BTC/USD strictly range-bound
The price of Bitcoin in the last 24 hours has been strictly range bound. It is stagnant in between $18,680 and $18,000 bracket with little movement to either side. Both the bulls and the bears are in a tug of war to take the price to extremes, and neither is yielding.
The long candle on December 9 indicates that the bulls have some steam left on the daily charts. The 20-day EMA is still above the price and shows how there are threats to the current uptrend. The price has support at $18,283 and bears have been able to violate that level twice in the past 24 hours. However, sellers were unable to maintain their momentum and take the price lower.
There is a strong buy wall at $18,000 and bulls have been able to defend it fiercely. The price has gone outside the Bollinger Bands but journeyed back inside within a few hours. So, the buying momentum is staggered at lower price levels. A successive close below the 20-day EMA will indicate that bears are slowly gaining ground.
BTC/USD 4-hour chart – Indecision will result in bearish takeover
The bulls have been able to sustain their support levels marginally to help Bitcoin price prediction. The dips have been used as buying opportunities, but the same is not right about volume. Yes, there is buying, but the pair has not bounced back to higher levels. The lower levels still beckon since the requisite volumes are in short supply. The flattening EMA and SMA are not helping matters either.
The RSI is hovering around 50, which is further complicating the scene for the day traders. The descending price channel on the hourly charts is painting a bearish picture. The uptrend line towards $19,000 holds the key. If the price moves under the uptrend line, the fall can be steep. The support at $18,000 can crack quickly to yield lower levels up to $16,625.
There is sufficient buying activity lined up at $16,190 level where buyers will emerge in droves. Bitcoin price prediction at $16,000 is bullish since institutional buyers will likely step in to save the day. On the other hand, the bulls must muster up the volume to create momentum and take the price above $18,283 level where 20-day EMA beckons.
The price must move above the descending uptrend line to convert bearish signals into bullish. A confident breakout beyond $19,500 will open the gateway towards $20,000 psychological resistance where bullish crypto analysts put Bitcoin price prediction.
Bitcoin price prediction conclusion – BTC/USD challenges vital support levels
At present, the Bitcoin price is hovering dangerously close to the key support level at $18,000 and $17, 525. It will be interesting to see how institutional investors respond to a price drop. Typically, large institutional investors do not dump the asset during steep price falls and can drive up the prices with sustained momentum.
Considerable research is done before adding an asset to a portfolio. Thus, the strong buy wall at $16,000 will likely provide support to a falling BTC and maintain a bullish Bitcoin price prediction. The fall can turn into an opportunity to increase holdings. The technical indicators are on more or less negative. Any broader crypto market movement can work wonders at this point in time.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Published at Fri, 11 Dec 2020 22:48:19 +0000