December 1, 2020 / Analytics

Bitcoin Price Analysis: BTC Is In Anticipation Of New ATH

bitcoin forecast

Bitcoin (BTC) cryptocurrency market is once again showing an upward movement and an increase in trade volume. Therefore, the coin should rise to $ 21,000 by December 8th.

Key Points

  • BTC price consolidated above the support zone around $ 19,000.
  • On the hourly chart, a downtrend line has formed with resistance at $ 19,500.
  • As a result of the next impulse, the value of the asset will exceed $ 20,000.

Last week, the Bitcoin exchange rate fell by 17% – from $ 19,496 to $ 16,220 (Bitstamp data). However, traders began to actively buy BTC after reaching the local bottom. Therefore, BTC price reached a record high of $ 19,864 on Monday. During the upward movement, the bulls broke through powerful resistance barriers at $ 18,000 and $ 19,000.

During the pump, BTC price exceeded the pre-dump value ($ 19,496). In this regard, the rapid decline in the cryptocurrency rate is a correction, and not the beginning of a downtrend. Based on the chart, the BTC market is currently in the fifth wave of a bullish trend. As a result, it is still too early to sell coins. With a high degree of probability, buyers will give at least one more impulse, and the value of the asset will reach its maximum value in history – $ 21,000.

btc chart

What Mark Can Bitcoin Fall In Price?

The bullish trend started in March 2020 and the price of the coin has been on the rise for nine months. Obviously, a dump will start in the near future. The timing of the current trend resembles the time frame of the 2017 trend. By analogy, we can assume that the price of Bitcoin will go down in December. The main question is to what level the asset will be dumped.

Fisher Transform indicator, designed to identify a trend change demonstrates that BTC price began to fall after the indicator rose to 4.80 at the end of 2017, and last year – 6.24. Now the Fisher Transform is 3.10. Theoretically, before the dump starts, the indicator should rise by at least another 35% – to 4.80.

btc chart

Bitcoin may fall to $ 12,000 as a result of wave A of the bearish trend. At this mark, there was a breakout of resistance (coincides with 0 Fisher Transform). The target for wave C of the downtrend is around $ 7000: at the -1 indicator level. Considering that the BTC market has undergone a global reversal, and the bearish trend line that emerged in January 2018 has been broken, the BTC rate is unlikely to fall below $ 7,000.

Technical indicators:

  • 4 hours MACD is in the bullish trend zone.
  • 4 hours RSI is above 60 (in the neutral zone).
  • Major Support Level – $ 19,000.
  • Major Resistance Level – $ 20,000.
  • The nearest pivot points are $ 19,216 and $ 19,715.
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