Bitcoin price shows concerning signals days before Christmas. Key levels have been defined to gauge where BTC may be headed next.
Bitcoin price looks dicey
Bitcoin price coil is on its way towards new yearly lows. Last week, the peer-to-peer digital currency showed applaudable strength as the bulls hiked their way back into the $18,000 price territory. Unfortunately, the hike was short-lived. Within 24 hours of establishing a new monthly high at $18,387, BTC embarked on a Penny-from-Eiffel-style decline.
Bitcoin price currently auctions at $16,902, a 3% increase from the recent downtrend’s pivot point. The words ‘pivot point’ are emphasized here as calling the brief pause during the downswing ‘a bottom’ could be a dangerous use of words. The 3% bounce on the day is likely a liquidity hunt as bears are forced to cover their positions following their profitable short.
The 50-day, 100-day and 200-day simple moving averages are all hovering above the current auctioning price. This display of lost support from the moving averages is usually only seen in strong downtrend rallies. Traders looking to enter the market should wait for an entry at the recent $16,256 pivot point. A second tag of the barrier could flood the gates with the same force that brought BTC down 10%.
Bitcoin price must invalidate the bearish bias to justify aiming for higher targets. If the bulls can reconquer the 50-day simple at $17,200, the bulls could provoke a countertrend spike towards the monthly high at $18,387. The BTC price would rise by 10% if the bullish scenario occurs.