TL;DR Breakdown
- Bitcoin price prediction expects a rise to $42,000.
- Strong resistance currently lies at the $36,250 mark.
- Strong support currently lies at the $35,000 mark.
The king of cryptocurrencies is showing bearish pressures as it is on a downtrend. The cryptocurrency’s 24-hour price actions were highly volatile, with a price change of around $2,650.
The 24-hour Bitcoin price high was recorded at $37,800, while Bitcoin touched a 24-hour low of $35,143. It appears that Bitcoin is recovering quickly after losing its bullish momentum and going into a possible reverse head and shoulder movement.
There are 10 neutral signals out of the 26 technical indicators, while buy and sell signals are at nine indications each. Nine of the oscillators are neutral with zero buy indications and two sell indications. Nine of the moving averages suggest a buy position, while seven are at sell indications with just one neutral indication.
Bitcoin price prediction: What to expect?
Analyst Alan Masters has identified the cryptocurrency in a bullish pennant in his Bitcoin price prediction. Bitcoin is towards the end of the formation and a break out is to happen soon. The analyst is hopeful for Bitcoin’s future and predicts a break out from the formation to the upside. Per the analyst, the corrections of Bitcoin have been relatively minor up till now.
Even though the cryptocurrency is giving mixed signals, the bullish momentum came to a halt after it encountered strong resistance at its all-time high; the analyst believes bullish pressures will likely dominate soon. Masters also believes that as Ethereum gained bullish momentum, Bitcoin is likely to be pulled upwards by the queen as they usually move together closely. Per the analyst, Bitcoin can be breaking its all-time high of $42,000 after the current consolidation.
Analyst Vaido Veek has discovered the cryptocurrency in a triangular formation in his Bitcoin price prediction. The analyst believes that the market is waiting for an eruption, and Bitcoin’s price actions do not make the direction clear; hence, the upwards and downwards break are equally likely and equal in magnitude.
Veek furthers that a breakout to the downside from the formation is likely to reverse the growth Bitcoin has seen in recent days. Per the analyst, a downward breakout can result in Bitcoin’s price dropping to $20,000. On the upside, strong bullish pressures can lead to the cryptocurrency breaking all resistance levels. In this case, the Bitcoin price prediction expects the price to go as high as $50,000.
Biden government might hurt Bitcoin
President-elect Joe Biden’s government has had cryptocurrency traders tied up in a knot as it is expected that the president-elect is likely to launch a crackdown on cryptocurrencies. The president-elect’s pick for Secretary of State, in a hearing today, stated that cryptocurrencies need tighter control and regulation as they are a hotspot for criminal activities. Bitcoin, being the king of the market, tends to be accused of leading the rally.
However, the data does not agree with this view. Chainalysis’s 2021 reported stated that only 2.1 percent of cryptocurrency transactions account for illegal activities. A majority of cryptocurrency transactions are made through centralized exchanges, which makes them compliant with regulations. Even though it may not be factual, the president-elect’s stance on cryptocurrency regulation may hurt Bitcoin and other cryptocurrencies.
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