Bitcoin maintains important level
A turbulent week draws to a close. After reaching the new all time high, the bulls had to take heavy bounces at the USD 20000 mark in the following days. Much was reminiscent of the situation in September. For weeks Bitcoin failed at the resistance at USD 12000 and many traders lost interest as a result. Are we experiencing such a “flattening” again at the end of the year or is the situation different? We take a look at the current market situation.
Bitcoin price on Saturday
The market leader may break resistance at USD 19000 on Saturday. Despite the enormous pressure of the sell-offs, this trend line could mutate into an important support. Again and again, the bulls were able to make quick recovery phases despite heavy losses. At the time of this article, the first mover is at a rate of 19116 USD, which corresponds to a daily gain of 0.33%. The weekly chart shows a gain of 8.02 %.
Between panic and euphoria
If you want to keep the overview these days, you need to be cool and experienced. Between FUD, FOMO, Panic-Sells, Hype and Whale Movement there are often only a few hours and the high volatility leaves little time for deliberate analyses. On the one hand, “trading experts” declare the USD 20000 mark as a minor stopover on the way to new spheres, while on the other hand several analysts warn of imminent price corrections. This is primarily a matter of filling the well-known CME gap (approx. 17000 USD – 18300 USD).
Resistance before the magic boundary
From a bullish perspective, the next resistances are at 19400 USD and 19700 USD. Behind the magic $20000 mark, the first confirmation marks would be at around $20354 and $20959. Although several indicators are pointing to a smaller consolidation on Saturday, explosive price breakouts cannot be ruled out. MicroStrategy’s $50 million investment, Spotify’s crypto-related job posting and the crypto index announced by S&P Dow Jones Indices all started several “hype waves” this week.
All eyes on the Bitcoin
The BTC Dominance Index is considered a popular tool for determining the balance of power between BTC and alternative assets. The current value of 62.6 % shows that a large part of the investors is focused on the No.1 crypto currency, while the Altcoins work in the background. With the launch of the long awaited Beacon Chain, ETH was able to celebrate another milestone, but the start of a new Altcoin Season failed to materialize. It remains questionable whether this role allocation will change in the coming months.
What is the next step?
In contrast to September, we are looking at a completely different situation today. Volatility has returned to the crypto-market due to the isolation from the traditional markets. Pumps and dumps in the four-digit USD range are back on the agenda, while the mainstream is drawing new investors’ attention to the “digital gold”. The market entry of PayPal addresses over 300 million potential users, the barrier to market entry is vanishingly low. The first mover is looking forward to a new era and a successful showdown at the 20000 USD mark could provide a trend-setting impetus.