Bitcoin (BTC) cryptocurrency rate has corrected after the recent fall. However, BTC price did not stay above $ 19,500, so the coin should drop in price to $ 17,600 by December 22.
Bitcoin price bottomed out around $ 17,554 (Bitstamp data) on December 11 then began to rise. The bulls to overcome obstacles of resistance at the levels of $ 18,000 and $ 19,000. On Tuesday, the value of the cryptocurrency reached $ 19,567, but after that, it fell sharply to $ 19,044.
Now the BTC rate is hovering above the 23.6% Fib fixed during the pump from $ 17,554 to $ 19,567. Thus, BTC/USD will rise in price to $ 19,567 or fall to $ 18,800 (38.2% Fib) during the next session. If the price of the coin moves beyond these limits, it will provoke an acceleration of the upward or downward movement. In theory, Bitcoin’s value could jump to $ 20,000 (a strong resistance barrier) or drop to $ 17,600 (a key support barrier).
The current market situation follows the dynamics of the BTC rate change in August 2020. The main difference is that in December the volatility level is much higher due to a more solid pump. Drawing an analogy, we can assume that by the end of the month the coin will drop sharply by 19% – up to $ 15,800. Then there will be a correction towards $ 17,500, and the second wave of the downward trend will begin with a target of at least $ 10,000. On the other hand, after the correction to $ 15 800 may start the fifth wave of the bullish trend, as it happened at the end of 2017. In this case, the value of BTC will reach at least $ 25,000.
Several large investors are betting on the continuation of the bull run in the Bitcoin market. In particular, billionaire Paul Tudor Jones believes that the halving that took place on the BTC blockchain in May 2020 will serve as an engine for the growth of the asset’s rate. In his opinion, BTC is an excellent means of storing and increasing capital.
On December 11, hedge fund founder Cramer & Co. Jim Cramer announced his plans to buy more BTC coins. He called Bitcoin a good tool for diversifying an investment portfolio. According to Kramer, the value of a cryptocurrency is often impossible to predict, but long-term investments in BTC bring a steady profit.
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