- Bitcoin price prediction of $20,000 seems far fetched amid bearish price action
- A V-type recovery is unlikely as the price stalls near the $16,500 support level
- Increased selling and bearish technical indicators are holding back the bull run
- BTC/USD faces intense selling pressure near the $17,000 level
Bitcoin price prediction remains bearish as price stagnates near $16,100 support
Hopes of a V-shaped recovery are fading fast as Bitcoin price struggles to cross $17,000 resistance. The whale buying action is evident near $17K, but bears have successfully turned the pivot point into a selling destination. The short-term hourly charts are on the verge of completing the bearish price movement, and higher lows signal the downturn is nearing exhaustion.
The on-chain activity depicts that bears are still in charge of the price action. Bitcoin price prediction, too, remains bearish as the pair looks to undergo more correction before resuming the daily uptrend towards higher levels. Once Bitcoin price surpasses the $18,000 level, the November bull rally will be back in action to target all-time highs.
Bitcoin price movement in the last 24 hours – Consolidation near $16,500
The parabolic rise of Bitcoin price prediction was stalled near the $19,000 level as overbought technical indicators sent flashing signals. The momentum built over the previous weeks brought BTC in the vicinity of all-time highs. However, before we could see $20,000 on the charts, the glorious rally was in for some correction. Bearish Bitcoin price prediction took over, and now the price hovers near $16,880 after touching a low of $16,214.
In the past 24 hours, the Bitcoin price remains stagnant near $16,880. However, excessive selling pressure has subsided to give way to more predictable candles. The price is within the stretched Bollinger Bands and tries to reach the middle of the bands at $17,500. BTC is undoubtedly trying to move away from $16,200 and has recovered slightly from the 15 percent drop. The broader crypto market is also relatively mild, and prices are recovering across the crypto spectrum.
BTC/USD 4-hour chart – Green shoots replacing red candles in Bitcoin price prediction
The massive ‘Buy Walls’ built by the bulls have not supported the price. BTC/USD fell through the $17,100 mark to touch $16,200 support, and the vital pivot point was lost within a few hours. Bulls were expected to stabilize the fall between the $18,350 to $18,720 range. The fall below the crucial range marked the beginning of the extended bearish phase.
The breakdown led to a cascading effect that took down multiple support levels. The downward chain reaction took the price near $16,200 support, where the drop stabilized. As traders are anticipating an up-move, the price must cross $18,000 to instill confidence into the trader’s mind. A Rising RSI and MACD would indicate a trend reversal on the hourly charts first. Market corrections are typically rough, and price can take a zig-zag path before establishing an upward trajectory.
The total market capitalization of Bitcoin has also remained stagnant near $400 billion. The market cap is also closing in on the 1.618 Fibonacci retracement level of the all-time highs. The middle of the Bollinger Bands on the 4-hour chart lies around the $17,830 level. The price must surpass the middle mark and also the 9-day EMA at the $17,034 level. Fortunately, the upper Bollinger Band is still within reach of an all-time high at $19,996. Therefore, a healthy bull cycle will start once the price crosses $17,500 resistance with a strong buying momentum.
Bitcoin price prediction conclusion – Bears won’t let go easily
The Bitcoin price is firmly in a bearish grip, and the bears won’t let it go smoothly. They will make the most of the much-awaited correction and push the price towards $14,000 lower support. However, bulls will give a strong reaction past the $16,100 level where strong buying can emerge. The daily timeframe supports near $15,800 to $16,200 will help the pair further in an extended selloff.
Short term technical indicators are pointing south. The 10-day SMA is facing downwards, and the recent recovery has had no positive effect. From a technical viewpoint, the Bitcoin price prediction remains bearish on the hourly front.
However, bear markets can be aggressive, and the pair won’t hesitate to slide even more if bulls remain out of the picture. The steep price decline in November 2018 came after BTC rose sharply in the months preceding the fall. However, this time around, the Bitcoin rally is built on both fundamental and technical factors.
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