• Bitcoin price looks set to rally substantially higher now that the social unrest in China is calming down.
  • BTC could stage a 17% rally in the coming week.
  • If the current breakout sees follow-through, this rally could extend toward the end of the year.

Bitcoin (BTC) price is popping higher this Tuesday morning in the ASIA PAC session as Chinese markets spurt higher. After the social unrest over the weekend and on Monday, markets are taking a 180-degree turn as the Chinese government comes with more easing policy guidance and commits to speed up the vaccination rate. On the back of these measures, markets are rallying as another supply chain glut is to be avoided, and inflation forces should decrease a bit further, triggering a rally in BTC that could continue into Christmas.

BTC is set to cut back over half of the losses for November

Bitcoin price performs a technical bullish pop as support returns at $16,020 on Monday, pushing price action back up. Currently, the red descending trend line is breaking with bulls piercing through it. If this move gets some follow-through and trade further away from that trend line, expect to see a higher-stretched rally.

BTC thus has been underpinned, and with the systemic risk out of China that another supply chain glut is being avoided overnight a sudden soft patch is opening up with room for several rallies. Expect to see some choppiness toward $17,000 at the monthly S2 support level that will currently act as resistance. Once that has been thrown over and drafted back as a bullish element, the rally could continue toward $19,036 with the monthly S1, the 55-day Simple Moving Average (SMA) and the high of November 21 as pivotal levels that bear a 17% gain . 

BTC/USD daily chart

BTC/USD daily chart

Risk to the downside still comes with the expected default of BlockFi in the aftermath of the FTX implosion. As the dominoes continue to fall, the distrust between the different stakeholders in the cryptocurrency industry is growing. A break and retest at $15,500 would not be unthinkable on the back of that.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Cardano Price Prediction: The market bottom no one wants to call

Cardano Price Prediction: The market bottom no one wants to call

Cardano price continues to make gains in the crypto market, as the smart contract has risen 70% since January 1, reaching a new uptrend high at $0.4138. Despite the skeptical market sentiment for risk assets, Cardano’s Price action remains unfazed.

More Cardano News

Algorand Price Prediction: Bulls aiming for a 25% spike

Algorand Price Prediction: Bulls aiming for a 25% spike

Algorand price is showing an applaudable amount of strength to start the month of February. The scalable blockchain token could rally an additional 25% if market conditions are met.

More Algorand News

Crypto.com Price Prediction: CRO at a crossroads

Crypto.com Price Prediction: CRO at a crossroads

Crypto.com price has been trading within a 10% range for nearly two weeks. The $0.08 barrier has consistently acted as resistance, and the mid-$0.07 has acted as support. The coiling range has yet to make a decision on which way it will resolve.

More Crypto.com News

Terra Classic Price Analysis: Ray Dalio’s outright negativity on crypto existence is bad PR for LUNC

Terra Classic Price Analysis: Ray Dalio’s outright negativity on crypto existence is bad PR for LUNC

Terra Classic (LUNC) could only book roughly a 1.4% gain on the back of the Federal Reserve meeting from late Wednesday, which triggered upswings in all risk asset classes. The biggest winner of the evening was EUR/USD, as it traded over 1% higher and broke 1.10 to the upside.

More Terra Classic News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP