Bitcoin price analysis: Bullish potential still unlimited despite healthy short-term retracement

BTC/USD shocked the world once again by trading above $18000 for brief moments
The $15000 mark is now the short-term support after a healthy correction

Tomas Salles FXStreet

Thursday December 7th was another historic trading day for the Bitcoin, any market geek should love a day like that. Yesterday’s action, opening at $13902 and reaching the $18000 mark, was again breath-taking. As BTC/USD reached its new all-time high, price action speed was lightning fast, signalling exhaustion for the bulls in the very short-term.

In the 15-min chart, Bitcoin has drawn a retracing C-wave, thus completing the pattern. In this very short-term timeframe, bullish potential is again there, so we could be going into another fascinating trading day.

BTC/USD 15-min

Chart indicators show the following developments:

Bitcoin has drawn a textbook retracement from its all-time highs, following every typical pattern. Right now, Bitcoin price is ready to turn higher again, with bulls regaining steam
Directional Movement Index shows equilibrium between buyers and sellers, but there is a certain divergence between price action and the D+

In the daily chart, technical landscape has barely changed, with the bullish scenario still intact. Bitcoin amplitude of movement has such magnitude that a $3000 retracement is nothing to be surprised of, even if it’s hard to believe. Bitcoin holders should get used to these kind of situations and avoid falling into any kind of bull/bear trap. Technical difficulties might bother some traders, as they might hint potential disorders in case of a sell-off.

In this type of scenario, platforms as CBOE or NASDAQ should be very welcome, as they will increase supply and demand in each trading side. These market giants getting into Bitcoin business might be what Bitcoin needs to become a safe-haven asset, with speculative trading in the main Cryptocurrency being boosted by these platforms, much more prepared.

BTC/USD Daily

The BTC/USD daily chart is showing that:

MACD still follows price into its stairway to heaven. Price structure not showing any divergence, still with bullish potential
Directional Movement Index shows sellers diminishing and buyers retracing a bit, but still at very high levels

Conclusion

It is not crazy to say that Bitcoin will target today levels above $18000, so we could be in for new all-time highs again. The $20000 mark or even a superior level is a very possible scenario. The counterpart is that such a spectacular rise leaves most important supports far from price action, with the 200-SMA around $5000.

On the upside, all-time highs are the only resistance keeping Bitcoin from rising sky high. Any projection on a potential ceiling looks impossible to make right now.

On the downside, first support level is at $16170, followed by $15650 and the most meaningful one at $14890.

Author

Tomas Salles

FXStreet

Tomàs Sallés was born in Barcelona in 1972, he is a certified technical analyst after having completing specialized courses in Spain and Switzerland. He expanded his technical training following the guidance of great experts on the financial markets.

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