- Bitcoin price tanked 7% yesterday and looks heavy again this morning.
- BTC sees bulls having difficulties staying above the 200-day SMA.
- A break lower could push price-action towards $44,088, resulting in another 8% loss.
Bitcoin (BTC) was on the back foot yesterday as cryptocurrencies came under pressure from profit-taking as the Christmas rally ended. BTC bulls refrained from making new highs and had to look below $50,000 for some support. As the price action opened below the 200-day Simple Moving Average (SMA), expect bears to seize the opportunity for another leg lower towards $44,088.
Bitcoin to hold $50,000 going into New Year looks almost impossible
Bitcoin is not enjoying its last few days of 2021 as the Christmas rally came to a halt and, in one trading day, almost wiped out all the built-up gains of that same rally. As price action opened below the vital 200-day SMA, a close below $47,918 would be seen as a very bearish signal and would spell more downside to come with just two more trading days for 2021. Reclaiming the $50,000 is still possible, but time is ticking away.
BTC price will see more bears coming in and push prices against $47,065, with a break to the downside as a result. Bulls will want to back off and leave bears to run their course as thin liquidity will enlarge and exacerbate the trend and reach $44,088. Once there, the nosedive should be halted with the S2 monthly pivot and the historical support that also caught the falling knife price action on December 04.
BTC/USD daily chart
With this thin liquidity, a trend could be easily reversed, which would see bulls pairing back their losses from the previous day with a test back toward $ 52,000, punching back through the $50,000 marker. As most investors are waiting for 2022 to start, some will want to preposition for the many bullish outlooks and forecasts that have projected Bitcoin a bright future in 2022. That additional attention and investor inflow would bring BTC back towards $55,350 by the end of 2021.
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.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.