TL:DR Breakdown
- Bitcoin price hits lows of $18,686 today
- BTC price depicts bullish rally in the works
- Down $540 on the day
- Volatility level decreasing as bullish momentum builds
- $20,000 level on the horizon
Bitcoin (BTC) price has dropped $540 in value today down towards lows of $18,686. This looks to be a fluctuational nature of BTC price over the last few days seems to signal one last rally before a breakout in price towards the historical resistance of $20,000.
A Bitcoin rally is certainly on the horizon. From the general bullish trend of the market, news of millennial preference of Bitcoin over gold, and the billionaire Paul Tudor depicting a strong forecast for BTC price over the next 20 years – BTC price is sure to react positively and reach towards $20,000 in the coming week.
At the time of writing, BTC price is hovering around $18,900 – down 2.2 percent on the day’s opening price of $19,422.
Use the oscillator below to check what role BTC might play in your portfolio
Bitcoin price prediction: 1-Day chart
Observing the 1-Day chart, I have left in the white arrow price prediction trend from the Bitcoin price prediction from the 1st of December 2020. As can be seen, the trajectory makes a slim miss on price targets today, but bearish reaction is expected during Bitcoin’s steady bullish rise. As BTC price sees a rally on the horizon, bulls are still expected to follow this ascending trendline into next week.
The chart volatility shows a gentle decline, but a general plateau reached between the 1st of December and today. Volume levels remain low and hesitant as Bitcoin price fluctuates between $19,800 and $18,600 over the past three days.
With little volume contributing the BTC price movement, the bullish trend is expected to suddenly breakout to the upside followed by a steep fall. As Bitcoin has witnessed multiple bullish green candlesticks in a row, bearish retaliation should be anticipated on the journey to a new All-Time-High (ATH).
Bitcoin price prediction: 1-Week chart
The 1-Week chart tells a very different story to the 1-Day chart.
The strong incline seen stemming from October to mid-November presented seven bullish weeks in a row. This move was too rushed, and as such, saw a stern resistance in late November. Since this point, the first week of December remains green and bullish with reliable expectations for further bullish momentum.
Observing the HV levels into December, volatility is on the decline as bullish activity reignites on the kindling of November’s plummet. In opposing balance with the On-Balance-Volume (OBV) indicator, the rise in OBV and the fall of HV provides solid evidence to show BTC price set for a breakout to the upside.
Volume levels still remain steady as hopes for $20,000 build support.
Bitcoin volatility levels: Historical Value Index (HVI) chart
Comparing the HVI chart to the previous 1-Week chart helps clarify the tendency for volatility when the bears control the market.
As volatility rises with bearish notion, and falls with bullish activity – BTC price should see no resistance or volatility in their next climb beyond $19,500. Beyond this point, if this pattern continues, a support level may be found above $19,300 in the next few days.
Bitcoin price prediction conclusion: BTC price set on path back towards ATH resistance level of $20,000
The Bollinger Bands (BBs) show consistent stability above the BBs Basis mid-line – only seeing a fall below this point in late November as a result of overzealous bullish activity. If December is to follow the path displayed within the BBs lines, expectations are set beyond $20,000 within the upcoming week. We could potentially see $20,000 broken before Monday the 7th of December 2020.
This Bitcoin price prediction suspects bearish retaliation will be superseded by bullish strength as BTC price continues to climb to Christmas and uncharted levels.
We here at Cryptopolitan continue to monitor the situation and provide educated technical analyses as it happens.
