- Bitcoin price prediction uncertain as price moves back and forth
- BTC price stagnant between resistance and support regions
- BTC/USD rejected again from $16,000 psychological level to find support at $15,350
- The weekly chart is bullish, but sell signals are flashing on the hourly charts
Bitcoin price prediction turns uncertain as bears increase selling pressure
In the past one month, the Bitcoin price prediction has charted a highly bullish trajectory jumping from $10,968 to a new high of $15,600. The massive surge has rewarded both investors and traders alike. Now, the tug of war between bulls and the bears has made movements somewhat stagnant as the pair struggles to cross the $15,600 mark.
Sellers have hit the price movement at the higher end of the ascending channel at the $15,750 level. As the markets absorb US Presidential election results, Bitcoin price prediction is reaching uncharted territory.
Bitcoin price movement in the last 4-hours reflects a tug of war situation
Both the bulls and bears are trying to wrest control of the price. In the past 4 hours, bulls have maintained the lead to keep the price above the $15,300 support level. However, when the price tries to move beyond $15,500, bears increase the selling pressure and bring the pair down. So far, there’s no clear picture on the 4-hour chart.
There’s no doubt that the daily chart is in an uptrend. However, the hourly timeframes are a little overstretched in terms of buying activity. Bears can take advantage of the scenario to further exaggerate the selling pressure and push prices towards the $14,800 range. The stiff resistance put forth by bears at the $16,000 psychological level is looking reasonably healthy.
The drop in prices and the current stagnation on the hourly charts are essential from the futures market perspective. Most exchanges were reporting a high futures contracts average, meaning the market was excessively long on BTC. Though this bodes well for bullish Bitcoin price prediction, the funding rate must cool down for a stable bullish trend. The current drop towards the $14,900 range is good for bullish Bitcoin price prediction as it cooled down the rather heated Bitcoin futures market.
BTC/USD 4-hour chart – Bears, are ready to grab the driving seat anytime
The bulls’ indecisive movements and the inability to confidently drive past $16,000 resistance are now reflecting on the chart. The pair is currently trading above $15,300 after falling abruptly from $15,800 high a few hours ago. Prolonged indecisiveness can exaggerate the selling and bring the price towards $14,000, where the 20-day EMA presently sits.
Bulls won’t allow the price to move below this level as heavy accumulation is expected to stabilize any aggressive fall. Also, the RSI is almost touching the overbought territory. Even if the chart turns red, the price can remain rangebound between $15,800 and $14,000. This could be the perfect opportunity for the bulls to take charge once again and resume the long-term uptrend.
Will Bitcoin price reach $17,000?
The $17,000 is a lofty target on the hourly charts, even by high bullish Bitcoin price prediction standards. The daily charts are still in bullish territory. As long as the support wall at $14,000 holds well and the MACD remains in an uptrend, $16,000 looks pretty much possible.
The technical indicators warrant that a small correction is due on the hourly charts. Bulls are perhaps ready for the charts to cool down before they begin the next accumulation phase. The little green candles in between large red candles are a sign of an impending correction. Long-term Bitcoin price history suggests there are strong chances of a minor correction.
If traders expect to see $17,000 on the hourly BTC/USD chart, bulls would have to run a strong wave with massive volumes. Institutional investors and BTC whales will also have to take part in this rally. Otherwise, traders will have to wait for a minor correction towards $13,980 before the bullish rally kicks off.
Effect of Pfizer vaccine and US Presidential elections on Bitcoin
The announcement of a 90 percent effective COVID-19 vaccine by Pfizer has put optimism back into traditional markets. Also, the US Presidential elections went by without any unfortunate incident, thereby giving more calm to the markets. All this impacts the safe-haven credentials of Bitcoin, meaning the price isn’t going to experience any sharp uptrend anytime soon.
Soon after the vaccine announcement, the price of BTC moved down towards $14,800 from a high of $15,830. The highly anticipated breakthrough resulted in a drop in prices of both gold and Bitcoin. Global stock markets respond positively, and money is moving out of safe-haven assets as traders move towards risk-on mode. Bitcoin price prediction is still in the bullish region, as BTC is a risk-on asset as well.
BTC whales and institutional investors are always ready to accumulate more BTC at lower levels. Further correction in BTC/USD due to vaccine announcements will also attract accumulation by large investors. The trend will help BTC price stabilize around support levels. As Bitcoin price reaches 2020 highs, bulls need consolidation to keep the weekly bullish momentum going if they want to hit 2017 highs of $19,500.
Bitcoin price prediction conclusion – Expect see-saw movement in the run-up to new highs
Even though Bitcoin price prediction has entered uncharted territory on the hourly charts, the long-term outlook remains bullish indeed. However, traders and investors must expect a zig-zag path to new 2020 highs and not a strong uptrend. The market must demonstrate maturity by giving fair opportunity to the bears to avoid overheating.
Minor corrections are counted as healthy signs of a mature asset. Bitcoin price is posting higher lows and recovering quickly after most recent falls. The present charts show that the market is ready to restart the bullish momentum anytime soon.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.