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Bitcoin keeps trying to break through to $ 20,000

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Bitcoin keeps trying to break through to $ 20,000

Bitcoin keeps trying to break through to $ 20,000
CONTENT

  • Bitcoin fights $ 19,400 resistance.

  • Daily technical indicators are showing signs of weakness.

  • BTC is likely in the final diagonal triangle.

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The bitcoin rate made another attempt to break through the resistance area of ​​$ 19,400, after briefly glancing above it the day before.

This attempt is expected to be successful and the price will continue to rise towards the resistance levels indicated below..

Bitcoin peeked past range highs

The BTC rate has been actively strengthening since the beginning of September. On December 1, the price peaked at $ 19,888, absorbing the previous historical record.

Bitcoin keeps trying to break through to $ 20,000

However, the technical indicators on the daily chart are showing signs of significant weakening. RSI and MACD give strong bearish divergence signals. In addition, the Stochastic Oscillator has formed a bearish crossover – for the first time since the beginning of the upward phase in September.

If the BTC rate begins to decline, three key support levels will be expected in the south: $ 16,036, $ 14,847 and $ 13,657 (Fibo levels of 0.382, 0.5 and 0.618 retracements, respectively).

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MTC schedule. Source: TradingView

On shorter timeframes, you can see that bitcoin faced resistance in the $ 19,400 area. The price had already rebounded from it on November 25, but then rallied and on December 1 again went to storm this barrier, piercing it.

However, BTC rolled back again. This suggests that we are not dealing with a bullish breakout, but rather with a price deviation beyond the upper end of the range (red circle on the chart). Now the bulls again ran into the same barrier.

MTC schedule. Source: TradingView

End diagonal triangle

According to the results of our current wave analysis, BTC is currently in sub-wave 5, which could go up to $ 21,733- $ 21,949.

Despite the fact that this scenario looks very realistic, the price dynamics after the rebound on December 1 and decline (see the chart below) suggests an alternative scenario.

MTC schedule. Source: TradingView

Bitcoin may be trading inside a rising wedge, completing the formation of a potential pattern ending diagonal. Underwave analysis confirms this probability.

Bitcoin keeps trying to break through to $ 20,000

In this case, the BTC rate could make a bullish breakout from this rising wedge and reach a high at slightly higher levels relative to December 1, but then the pair will decline sharply..

According to the standard rules, wave 3 cannot be the shortest wave in a pattern. Therefore, a rise above $ 20,442 will neutralize this pattern and suggest that the price is likely to rise all the way to $ 21,700 as indicated in the previous chart..

MTC schedule. Source: TradingView

Conclusion

Thus, bitcoin is expected to break above $ 20,000, however a potential trailing diagonal triangle could limit the market’s gain in the event of such a bullish breakout. Break of $ 20,442 could target Bitcoin at $ 21,700.

You can read the previous Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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