- Bitcoin price prediction expects a decisive price correction.
- BTC went as low as the $17659 mark but stabilizing at the time of writing.
- Analyst expects a retrace as low as $16500.
The king of cryptocurrencies has gained momentum towards the end of the year and it appears that the $20k mark will soon be crossed. After staying in $19,000s, the king dropped below to a stable level of around $18,200. Bitcoin achieved its all-day high at almost $19,300 while the lows found support above the $17,600 mark.
9 out of the 28 technical indicators are signaling buy with 9 sells and 10 neutral. The overall current indication stands on normal buy. The majority of the oscillators are neutral and moving averages have a tie between the buy and sell indicators is at 8 each.
Bitcoin price prediction: What to expect?
Analyst Vince Prince has identified a double top formation as well as many other structures that indicate bearishness. Bitcoin is currently trading into a decisive formation expected to lead the king to complete the double top formation. Bitcoin has tested and failed the massive ascending channel formation in the blue. Bitcoin has also fallen below the 45-EMA and 55-EMA curves. Apart from nearly completing the double top, Bitcoin also pulled back many times from the grey resistance line. All of these factors indicate strong bearishness from the king of cryptocurrencies.
Bitcoin is fast approaching the lower boundary line of the ascending channel formation. As Bitcoin reaches the lower boundary, it will close in on the decisive zone marked in orange. The future price actions will be determined based on the behavior of the king at this point. If Bitcoin falls below the lower boundary line, more bearishness can be expected. Below this boundary, the king of cryptocurrencies will face increasing bearish pressure and complete the double top formation. Bitcoin will result in a strong major c-wave extension.
However, if all seems well, then a swing back can be expected from the king at the decisive zone. The king will immediately come face to face with a major resistance line. If the king is able to cross the resistance level, then the bearish scenario will be invalidated. Otherwise, even after the brief swing back, the king will continue a descend towards bearishness.
Analysts are predicting strong bearishness from Bitcoin as the coronavirus is worsening worldwide. Furthermore, the US-dollar currency index seems to be on the way for some correction as it is currently highly over-sold.
Analyst Alan Masters suggests in his Bitcoin price prediction that the king of cryptocurrencies is headed towards a staggering low of $16,500. The EMA-10 level had been holding on as a strong support level for the king, but now the king has fallen below EMA-10.
The EMA-20 level of $18,300 had already failed, so now the next level of support of $16,500, which is the EMA-50, will be tested. The relative strength index and moving averages convergence/divergence is also giving out indicators for strong bearishness.
The Fibonacci retracement also shows a drop to approximately $16,000 at 0.386 Fib, after which the market will move to bullish trends, and a very plausible possibility of crossing the $24,000 mark will exist but only if a swing back from the 0.386 Fibonacci retracement occurs.
