The Bitcoin price continued to increase significantly in value over the Christmas holidays and shot up by 25 percentage points in the meantime.
A new all-time high is not unlikely. This bullish development also caused the market dominance of the leading currency to rise to a new annual high at 72.01 cryptocurrency.
Bitcoin (BTC): breakout boosts BTC price by more than 20 percent
- BTC price: $26,937 (previous week: $22,960).
- Resistances/targets: 28,398 USD, 29,748 USD, 35,075 USD 40,407 USD, 43,703 USD
- Supports: 25,752 USD 24,298 USD, 23,887 USD, 21,892 USD 21,113 USD, 19,884 USD, 18,488 USD, 18,005 USD, 17,581 USD
Price analysis Bitcoin (BTC) week 52
Bullish scenario (Bitcoin price)
The price trend of the lead currency Bitcoin Rush can still be seen as very bullish. Although the BTC price corrected by around 6 percentage points from its new all-time high in the last 24 hours to currently 26,727 USD, it would be presumptuous to speak of a reversal because of this. As long as the BTC price trades above USD 24,298 and preferably north of the previous day’s low at USD 25,752, the chances for a renewed attack in the direction of the all-time high are quite good. If the bulls manage to break through this chart level to the upside, the next important price target in the area of the 161 Fibonacci extension from the monthly chart at 29,748 USD will come into focus for investors.
After the BTC price was able to generate a new all-time high in the previous week, peaking at 24,298 USD, investors took advantage of the bullish momentum in the market and surged to a new all-time high beyond 28,000 USD yesterday, Sunday, December 27. Starting from this price level, the first profit-taking set in, causing the BTC price to consolidate to currently USD 26,715. After this brilliant price increase, the reserve currency is currently catching its breath and reducing its overbought condition. The price correction towards USD 20,000 mentioned in the previous week’s analysis has failed to materialize so far. Instead, a new future gap formed, which is only closed with a price correction to 23,710 USD.
At this chart level, renewed profit-taking is to be expected. If the bulls manage to push the price of the key currency above USD 30,000 in the coming trading days, it is also conceivable that it will march through to the maximum price target for 2020 at USD 35,075. This is the 361 Fibonacci extension of the current upward movement. If the demand for Bitcoins remains unbroken at the beginning of the coming year, a continuation of the bullish price rally towards USD 40,407 as well as a maximum of USD 43,703 cannot be ruled out either. As long as the BTC price does not correct back below the 22,000 USD as well as maximum 19,884 USD, the chances for a price increase beyond the 30,000 USD remain good.
Bearish scenario (Bitcoin price)
Currently, the bears continue to not get a foot on the ground. Any efforts by the sellers to make the Bitcoin price correct back towards the 20,000 USD have failed so far. Although the BTC price corrected by more than 7 percentage points to USD 22,600 within one trading hour on December 23, it was able to avert a break of the support at USD 22,000. From this level, the BTC price shot north again and increased in value by more than 20 percent.
Only if the sellers manage to push the BTC price dynamically below the previous day’s high at 25,752 USD, the probability for an extension of the consolidation to the breakout level at 24,298 USD increases. If this support can also be undercut per daily closing price and the BTC price subsequently slides back below the key support at 23,887 USD, a price setback to the EMA20 (red) at 22,973 USD is to be planned. This would initially close the new gap in the future price at 23,710 USD.
If the bears also manage to sustainably undercut the EMA20, the previous week’s low at 21,892 USD comes back into view. However, only if this support is also dynamically undercut, correction targets at 21,113 USD (200 Fibonacci extension) and 19,884 USD come back into focus for investors. In the area of 19,884 USD, investors should once again try to push the BTC price back towards 24,000 USD. If the bitcoin price unexpectedly falls back below the 20,000 USD par daily closing price, this would be a first beasish exclamation mark. The probability of the price gap closing between 18,488 USD and 18,005 USD would increase noticeably. (Future gap from December 11, 2020).