BTC price could drop to $14,000 before another upside momentum blasts prices past the $20,000 mark
Earlier this week, Bitcoin was on the verge of hitting $20,000. However, instead of testing the all-time high level, BTC nosedived to lows of $16,220.
An attempt to post an immediate rebound hit a wall around $18,900 and will fade further if the rejection continues. At the time of writing, today’s action has seen BTC/USD touch lows of $16,603 although bulls are testing resistance near $17,000.
The likely drivers of the correction include a sell-off by whales when BTC/USD broke above $19,000 and then the massive liquidations witnessed in the futures market over the past three days.
Although optimistic of BTC/USD at $20K this year, CryptoQuant CEO Ki Young Ju notes that the rally to the historical peak will come after several minor corrections.
The analyst’s short term outlook for Bitcoin price borrows from the ‘All Exchanges Inflow Mean’ indicator. According to him, the metric indicates selling pressure remains high to mean further corrections or sideways trading.
“More $BTC corrections might come. All Exchanges Inflow Mean (144-block MA) remains still high. In my opinion, we’ll face some corrections/sideways this week and it will break $20k by December this year. I’ll stack some sats a few days after”, Ki noted.
Another analyst charting the potential correction to $14K is the pseudonymous trader CryptoKea.
According to the trader, Bitcoin’s rally to $19,400 and subsequent rejection is because the price had reached “the top of the bullish channel [which] has done an excellent job in acting as short-term resistance, just as it did at this stage in prior bull markets”.
As can be seen in the chart below, Bitcoin will be in the bullish territory if it crosses the $18,500 level. A drop to the $12,000 area will put it into a bearish zone.
Lookintobitcoin.com creator Philip Swift says the Golden Ratio Multiplier indicator also points to the correction. As per the indicator, a rejection at the 350 DMAx2 curve puts BTC’s main support levels on the downside at $16,000 and $13,000.
Bitcoin price chart with the Golden Ratio Multiplier indicator. Source: Philip Swift
Entrepreneur and crypto trader Bob Loukas says that trading is “never a way street”.
“Most have a short memory. Remember in Jan 2017 just shy of #Bitcoin ATH’s, boom 34% decline. Then 2 months later a sharp rally, new ATH’s, and double boom 34% decline”.
The sell-off being witnessed in the Bitcoin market is taking place on the back of Coinbase suffering yet another systems outage while OKEx has registered record withdrawals on the resumption of the service.
Today, the Bitcoin price loses traction after opening at $17,155; losses likely to continue in the near term.
BTC/USD Long-term Trend: Bullish (Daily Chart)
Resistance Levels: $19,000, $19,200, $19,400
Support Levels: $15,400, $15,200, $15,000
Looking at the daily chart, one can easily conclude that BTC/USD is heading back to the red zone as the coin is posting minor losses of 0.56% on the day after commencing the trading at $17,155. More so, the coin has an intraday high of $17,181; although the world’s largest crypto touches the support level of $16,989 before going back to where it is currently trading at $17,058.
Would Bitcoin Price Go Down Or Up?
The Bitcoin price is seen plunging below $17,000 one more time, marking $16,989 as the current daily low at the moment. Does this mean that Bitcoin (BTC) is finally leaving the significant $17,000 level and searching for a new low? However, looking at the declining daily volume candle, together with the steady but stable recent Bitcoin price action, it can be assumed that the market may soon experience a stronger bearish movement.
At the time of writing, BTC/USD is struggling to maintain the $17,100 level and if the coin follows the downward trend as the RSI (14) moves below the 55-level, the next supports may likely come at $15,400, $15,200, and $15,000. From the upside, by maintaining the current level of $17,085, any bullish movement may likely cross above the 9-day and 21-day moving averages to send the price to the resistance levels of $19,000, $19,200, and $19,400 respectively.
BTC/USD Medium-Term Trend: Bearish (4H Chart)
On the 4-Hour chart, BTC price hovers below the 21-day moving average around $17,084 which may take time to persistently trade above $17,100. However, if the bulls regroup and gather enough strength, the upward movement may be able to reach the $18,200 and $18,400 resistance levels.
On the downside, the immediate support is around the $16,500 level while the main support is at the $16,000 level. Therefore, crossing below the lower boundary of the channel may cause the coin to hit the supports at $15,800 and below. Technically, BTC/USD may be moving sideways as the RSI (14) moves above the 40-level.
This is the final part of a three-part series of articles about the state of blockchain in Europe. The series covers the blockchain scene in some of the most important European nations. I would like to thank PR firm Wachsman for sharing with me the facts & figures and the commentaries present in this series. Part one may be read here and part two, here.
The Netherlands and Switzerland are the remaining two European countries whose blockchain spaces will be reviewed in this third & final part.
It will not be incorrect to say that the Netherlands is on the rise on the global blockchain scene. This European nation recently hosted the Odyssey Hackathon, the biggest blockchain and AI hackathon in the world. The event was supported by the Netherlands Authority for the Financial Markets (AFM), the Ministry of the Interior and Kingdom Relations of the Netherlands, the European Union Regional Development Fund, De Nederlandsche Bank (the Dutch Central Bank), KLM and Deloitte. With 1,500 people in attendance, it saw 100 teams compete for €200,000. The Special Envoy of Startup Delta, Prince Constantijn van Oranje-Nassau, also supported the hackathon.
Night view of the Swiss canton of Zug and its lake. Crypto Valley Association, an autonomous, government-backed alliance founded to leverage Switzerland’s strengths to create the world’s foremost blockchain and cryptographic ecosystem, is based in Zug.
The presence of state-of-the-art centers and knowledge hubs like Crypto Valley, which hosts 20% of the worldwide blockchain market; flexible regulatory bodies and the government’s strong encouragement have all enabled Switzerland to thrive as a leading hub for blockchain revolution. Switzerland is also the ICO capital of Europe, where firms raised $456 million in 2018, and $1.46 billion in 2017. Startups in this European nation received nearly 1.24 billion francs (almost $1.25 billion) of venture capital in 2018, about 32% more than the year before.
As for the number of DLT startups operating in Switzerland, there are 712 of them (out of 750 companies in the Crypto Valley) as of Q1 2019. Demonstrating the breadth of firms in the Swiss blockchain cluster is the startup Utopia Music, which is a new entrant into the Crypto Valley top 50 and the only media and entertainment firm to do so.
Switzerland also hosts four Unicorn startups (firms already worth billions). These startups include Dfinity, Cardano, Bitmain and Ethereum.
Crypto Valley Association president Daniel Haudenschild said, “At the heart of the blockchain movement, the Crypto Valley Association has been central to creating Switzerland’s leading position as a pioneer in cryptocurrency and blockchain. The valley is home to some of the most innovative and influential blockchain companies in the world, only made possible by the friendly regulatory environment, secure and predictable legal framework, world-class infrastructure, talent pool, sound policies and economic strength here in Switzerland.”
Armin Schmid, CEO of Swiss Crypto Tokens, part of the Bitcoin Suisse Group, stated, “At Swiss Crypto Tokens, we consider ourselves very fortunate to call Switzerland home. The Government here has always shown great encouragement of the blockchain community and this has undoubtedly been a huge part of our success in positioning Switzerland as the ‘Crypto Nation’. In addition, given how developed and influential the Swiss financial sector is — managing around 27.5% of all global cross-border assets — Switzerland is an ideal environment with a stable economy and currency for liquidity-providing instruments such as the CryptoFranc, our Swiss-Franc pegged stablecoin.”
The daily chart reveals that the Ethereum price is approaching a crucial support level, similar to Bitcoin (BTC).
Resistance levels: $620, $640, $660
Support levels: $420, $400, $380
ETH/USD is trading down 8.33% at its current price of $521.51, which marks a notable decline from its daily highs of $577 today when the bulls attempt to spark another rally. In the next negative movements, ETH/USD may find some support in the lower $480 level, as it has bounced multiple times after visiting this level.
What to Expect from Ethereum (ETH)
The Ethereum (ETH) is currently following the bearish trend with a tremendous price drop. Although many traders were expecting a lot from the coin before it suddenly changes to the downside. Meanwhile, the majority of the altcoins started trading today with a fall as the Ethereum price is seen trading under the 9-day moving average but yet to break below the lower boundary of the channel.
Moreover, a bearish drop may likely roll the market down to the support level of $420, $400, and $380 while a possible bullish surge may drive the market above the moving averages at the $580 resistance level. Meanwhile, the $620, $640, and $660 may further provide resistance levels for the market. The technical indicator RSI (14) is facing the negative side and staying there may cause the coin to fall below the critical supports again.
Against Bitcoin, the market price remains within the negative side but still trading above the 9-day and 21-day moving averages. The bears are already taking over the market as ETH/BTC is currently trading at 0.0303 BTC and the bulls failed to push the price upward. Meanwhile, if the market continues to drop, the next key supports could be 0.0270 BTC and below.
However, on the upside, a possible bullish movement may surface and this could push the market to cross above the upper boundary of the channel, once this is done, the resistance level of 0.0330 BTC and above may be visited. As for now, the RSI (14) is seen moving below the 55-level, suggesting that the market may continue to fall.
The Bitcoin price continues to follow the bearish movement as the price drops below $18,850.
BTC/USD Long-term Trend: Bullish (Daily Chart)
Resistance Levels: $20,600, $20,800, $13,000
Support Levels: $17,800, $17,600, $17,400
BTC/USD is hovering at $18,820. There have been instances when BTC has exchanged hands below $18,550 sustaining the bearish price action is a downhill task. As the daily chart reveals, the path of least resistance is still downwards with the formation of a bearish pennant pattern.
Where is BTC Price Going Next?
The technical indicator RSI (14) reveals that the market movement is bearish. Despite the drop suffered, the technical indicator remains within the overbought zone. This could mean that there is still room that may be explored by the bears. Therefore, BTC/USD may continue to follow the downtrend if the market price crosses below the 9-day moving average.
On the upside, recovery may not come easy but any attempt to cross above the upper boundary of the channel may negate the bearish scenario and allow for an extended recovery towards the resistance levels at $20,600, $20,800, and $13,000. However, an increase in selling pressure across the market could force the Bitcoin price to follow a painful path towards the support levels of $17,800, $17,600, and $17,400.
BTC/USD Medium-Term Trend: Ranging (4H Chart)
On the 4-hour chart, the Bitcoin bulls have not been able to push the market price above the 9-day moving average. The chart reveals that the coin survived the $18,500 support as the market rebounds from the low of $18,502. However, the Bitcoin price is likely to return to the bull market if the price breaks above the $19,000 level. Higher resistance is located at $19,500 and above.
Moreover, if the price drops below the 21-day moving average, even $18,500 may not be able to hold the support as the RSI (14) faces the south. Therefore, the king coin is likely to fall visit the $18,200 and below if the price breaks below the lower boundary of the channel.
Bitcoin (BTC) Price Prediction – November 25, 2020 Yesterday, Bitcoin rebounded above $18,400 as price broke the $18,800 overhead resistance. BTC price rallied to $19,400. The king coin is now a striking distance to the psychological price level. Today, BTC/USD is trading at $19,144 at the time of writing.
Resistance Levels: $13,000, $14,000, $15,000 Support Levels: $7,000, $6,000, $5,000
On November 24, Bitcoin resumed its rally as price rallied to $19,400. Before now BTC has been in a downward correction. The price has been fluctuating below the $18,800 resistance for the past four days. Buyers were unable to push BTC above the overhead resistance. Yesterday, a strong bounce above $18,400 propels the price to break the $18,600 and 18,800 resistances.
BTC is now trading above $19,000. After reaching the $19,400 resistance zone, BTC retraced and found support above the $18,850 price level. The coin has resumed upward move to retest the recent high. On the upside, if buyers can push BTC above $19,400, the coin will rally above $20,200. In the previous price action at the $18,800 resistance, BTC took more than three days of correction before resuming upside momentum.
Bitcoin (BTC) Indicator Reading Bitcoin is at level 80 of the Relative Strength index period 14. Since October 21, BTC has been trading in the overbought region of the market. The coin has been trading in a strong bullish momentum. However, the overbought conditions do not hold as BTC has been trading in a strong trend market. The 21-day and 50-day moving averages are pointing northward indicating the uptrend
Nevertheless, Bitcoin has resumed the upside momentum as bulls break the $18,800 resistance. Meanwhile, the Fibonacci tool indicates a possible upward move of the coin. On November 24 uptrend; the retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the market will rise to level 1.618 Fibonacci extensions. In other words, Bitcoin will rise to $20,205 high.