The bitcoin price recovery trend above $ 19,000 has the potential to influence market sentiment and push prices higher this week.
ToReport CoinTelegraph introduced December as a fruitful month for Bitcoin, as the influx of institutional investors into the market to inject bitcoin into the market is increasing. MicroStrategy, a well-known business intelligence firm, has announced that it has sold $ 650 million in premium debt at a 0.75% interest rate with a maturity of 2025. After identifying working capital needs and other general objectives of the company, the company now intends to invest this net income in bitcoin.
When institutional investors are eager to buy Bitcoin even near its highest price level, it is not surprising that the reforms will be superficial and shallow. In an interview with CNBC, Tyler Winklevoss said that institutional investors are often concerned about emerging inflation as a result of the printing of money and corporate support packages caused by the Corona virus. So they have set aside a lot of money to invest in bitcoin.
The price of Bitcoin moved above $ 19,000 again yesterday and may once again challenge the $ 20,000 psychological resistance. If this level of failure is considered valid, it may cause FOMO or fear of being left among the traders, because most of these people are left out of the current price rise. If we see the influx of these people into the market, it will be possible to increase the momentum of the Bitcoin price and start the next phase of the uptrend.
Along with Bitcoin, there is a group of Altcoins that may accompany this uptrend next week. We look at the charts of the 5 digital currencies this week to identify the significant levels of support and resistance to watch out for.
Bitcoin prices closed below the 20-day moving average on December 10 and 11 (EMA 20 – blue line in the picture). However, the high wick of the price candle on December 11 indicates that buyers have entered the falls instead of being afraid and leaving their positions.
On December 12, the price jumped above the 20-day moving average (EMA 20 – blue line in the picture) at $ 18,435. The move has trapped sellers who have entered the market in the past few days in the hope of a sharp drop in prices. Coverage of these loss-making positions by sellers and the arrival of new buyers has pushed the price to the top of the downtrend yesterday.
The price has once again reached the resistance area of $ 19,500 to $ 20,000. With strong price penetration above this resistance area, there is a possibility of starting the next wave of upward price movement.
On the other hand, if the price moves away from the current levels and moves below $ 17,500, the current levels will probably be the short-term price ceiling. Such a move would be able to lower the price to support at $ 16,191.02. The 20-day moving average is moving higher and the Relative Strength Index (RSI) is once again jumping above the 50 level. Therefore, buyers have a relative advantage in the market.
The four-hour chart shows the formation of an ascending triangle pattern in the price. This pattern will be activated with the break (breakout) of the price above the resistance area with the target of $ 23,576. However, market bears are trying to delay the uptrend in key resistance at $ 19,500. If the price moves above the current levels, there is a possibility that buyers will re-enter the price drop to the 20-day moving average (EMA 20 – blue line in the picture).
A strong jump in the price of this support, the breakout view will increase it above the resistance of $ 19,500. On the other hand, this uptrend will be eliminated by turning the price from the current levels and falling below the lower side of the price. Such a move would trap a group of buyers, which would result in an emotional sell-out. Under such circumstances, the price is likely to fall to the support of $ 16,191.02.
The price of Ethereum has moved above the ceiling of its downward channel, which shows the dominance of buyers. In the current situation, the price can move to the resistance area of 622,807 to $ 635,456.
The Relative Strength Index (RSI) has jumped from its mid-range to the top of the downtrend line. This move also shows the superiority of buyers in the market. If the group manages to push the price above this resistance area, there is a possibility that the next bullish price wave will start. Although there will be valleys or price peaks in the middle of this move, the next target will be $ 800.
On the other hand, if the price moves above the resistance area and re-enters the channel, it is likely that the recent breakout was the price of cattle traps.
The four-hour price chart shows the formation of an ascending triangle pattern in the price. This pattern will be activated with the breakout and closing of the price above the level of $ 622,807. The moving averages are nearing an uptrend, and the Relative Strength Index (RSI) is in its positive territory. The combination of these factors shows the dominance of cows over market bears.
This uptrend will be eliminated by moving the price away from current levels or upward resistance and falling below the triangle pattern. Such a move would increase the likelihood of further price declines to support at $ 488,134.
The Monroe price on December 7 has formed a reverse pattern in its price. But on December 9, sellers quickly pushed the price down below the neckline again. However, buyers re-entered the market with a 20-day moving average at $ 133 and pushed it above $ 135.50 on December 11. Such moves indicate an aggressive buying trend at lower price levels.
The upward slope of the moving averages and the placement of the Relative Strength Index (RSI) above the level of 66, give the buyers the advantage. The uptrend indicates the $ 167 target. However, it is possible that market bears have made other decisions. There is a possibility that these people will defend the $ 150 psychological resistance. If the price turns after hitting this resistance but jumps from the support of $ 135.50, this move indicates the accumulation of buyers at lower levels.
On the other hand, if the price moves below $ 135.50 support and the simple 50-day moving average (SMA 50 – red line in the picture) at $ 124, sellers will take control of the price.
The four-hour price chart shows the arrangement of an ascending triangle pattern that was activated above the $ 142.50 level with the breakout price. However, the uptrend has not increased and the price is limited in the range of $ 142.50 to $ 150. If buyers push the price above $ 150, it is likely to continue the upward trend to $ 162.50. The upward slope of the moving averages and the relative strength of the relative strength index indicate that the uptrend is continuing.
Price is not On December 12, it jumped higher with strength and hit the resistance of its previous ceiling at $ 0.27688. In the current situation, sellers are trying to delay the uptrend in this resistance.
However, if buyers prevent prices from falling sharply from current levels, it means that traders will probably not be in a hurry to close their positions. This will cause limited price fluctuations below the high resistance.
The uptrend of the 20-day moving average (EMA 20 – blue line in the image) and the relative strength of the relative strength index (RSI) in its positive area indicate the continuation of the uptrend. If buyers push the price above the resistance of $ 0.27688, the price is likely to rise to $ 0.3564607.
Market bears are vigorously defending high resistance. If the price jumps above the 20-day moving average (EMA 20 – blue line in the picture), the probability of a breakout will rise above $ 0.27688. The uptrend of the 20-day moving average and the relative strength index (RSI) in the positive area indicate the superiority of buyers.
On the other hand, if the price moves below the moving averages, there is a possibility that the price will fall to the uptrend line. Failure of the price below this line will mean a decrease in the dominance of buyers.
The price of EO is fluctuating in an uptrend channel. The price has moved down from the $ 95 resistance above on December 8, but on the plus side, buyers have entered the market with a drop to the 20-day moving average (EMA 20 – blue line in the picture) at $ 77.
The Relative Strength Index (RSI) has once again jumped up from its mid-range, and the 20-day moving average has also moved up. This marks the possible end of price correction and the return of buyers. The first price target on the way up is $ 95.
If buyers manage to push the price above this level, there is a possibility that the next price wave will start. $ 100 resistance will probably act as a barrier to price, but if the price penetrates above it, there is a possibility that the price will rise to the top of the uptrend channel at $ 112.
The bullish view of the price will be eliminated by turning it from the current levels and falling below the floor of the bullish channel. Such a move warns of a reversal of the trend in favor of sellers.
The price has moved up from the level of $ 70,564, which is slightly above the floor of the price uptrend channel. But market bears are trying to delay the price recovery to $ 86.14.
If buyers manage to push the price above this resistance, the price is likely to rise to $ 95. Failure of the price above this level will also mean the beginning of a new upward wave of prices.
On the other hand, if the price moves down from the level of $ 86.14, there is a possibility of forming a right shoulder of the price in the reverse pattern of the head and shoulders. This view will be eliminated by moving the price below $ 70.50 support.