Bitcoin Price & Technical Analysis: BTC Still Recovering

UTC by Dmitriy Gurkovskiy · 2 min read
Bitcoin Price & Technical Analysis: BTC Still Recovering
Photo: Roboforex / TradingView

After a large plunge, the BTC is recovering. The market is still uncertain, but the flagship crypto takes its chance to rise. On Thu, Dec 20, 1 BTC is $4,137, reports Dmitriy Gurkovskiy, Chief Analyst at RoboForex.

After a large plunge, the BTC is recovering. The market is still uncertain, but the flagship crypto takes its chance to rise. On Thu, Dec 20, 1 BTC is $4,137, reports Dmitriy Gurkovskiy, Chief Analyst at RoboForex.

On H4, the crypto made a new low, while the MACD converged and the descending channel resistance had been broken down; the price then moved to the upper projection channel and reached the target resistance. The current move is none other than correction after the previous downtrend. The current correction level is approaching 23.60% Fibo, or $3,930, with the following target lying at 38.20%, or $4,427. In the short term, a local downtrend may form. The local support is meanwhile at $3,490, while the major one is somewhere near $3,121.

On H1, the BTC is testing the short term ascending channel support, which may then get broken out, with the price falling to $3,528. This will be confirmed in case the Stochastic leaves the overbought territory and forms a black cross. Once such a pullback is over, the price may start rising again, aiming for $4,125.

Still, few people are optimistic about cryptos in general. As such, Arthur Hayes, BitMEX CEO, said the cryptos are a kind of experiment. He is not sure whether Bitcoin will be able to keep the balance in the long term or whether it will finally become a new asset class.

At the same time, crypto experience may prove very useful for other financial markets, Hayes says, referring to 24/7 trading, among other things. Besides, digital coins may at some point in time become a means of raising and transferring money, but even if this happens, it won’t in the nearest future.

Applying cryptos to ‘real life’ is still something to be discussed. As soon as it is resolved, new investments will be sure to enter the market, successfully changing the current situation.

The latest rise in Bitcoin popularity already helped some miners to get their equipment back to work, which is great.

Disclaimer: Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

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Dmitriy Gurkovskiy
Author: Dmitriy Gurkovskiy

Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.

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