Btc Slides In Price
Bitcoin Price Slides 8%, Retest of $16k Possible 3
  • The Bitcoin price is losing its bullish steam.
  • All in all, the events of the last two quarters have been spectacular to watch.
  • Buyers took charge and drove prices back to all-time highs in some exchanges. It was unfathomable for traders—even investors, to think of a sharp reversal barely two years after a shock dump down back to $3,200 in the depth of the crypto winter of 2018.
  • The re-bounce was backed by deep-pocketed investors who were also skeptical of Bitcoin. With millions being sunk, traders are, nonetheless, confident of a snap back to trend if prices are maintained above core levels.

Bitcoin (BTC) Price Overview

Bitcoin Price Analysis For December 11
Bitcoin Price Analysis For December 11 – Trading View

At the time of writing (December 11), buyers are losing out to determined bears. Of note is the drop below the 20-day moving average of the volatility gauging Bollinger Bands (BB).

With the Bitcoin price trading below $18k and a series of lower lows printing relative to the upper BB, odds of deeper corrections cannot be discounted.

Still, amid this, a sharp reversal back above the 20-day moving average may signal trend continuation back to $19.83k and even $20k to $25.5k in 2021.

Supportive of this projection is low participation levels in the current setup and bullish news. Even so, important support and resistance levels to watch out for in the immediate term are $16k–on the lower side, and $19.83k–on the upper side.

Losses below the former will confirm the current consolidation as a distribution and a primer for even deeper losses—as aforementioned, back to $14k. Conversely, gains above $20k will set the ground for FOMO and trigger to a new all-time high in the medium term.

Who Is Moving the Bitcoin (BTC) Market?

Behind Bitcoin’s sustained rally over the last couple of news is the stamp approval from Wall Street megaliths.

MicroStrategy bought more, Square owns Bitcoin and its CashApp is processing more coins for customers, on the other hand, PayPal is set to roll up the purchase of cryptocurrencies to their global clients estimated to be over 300 million including 60 million registered merchants.

On Dec 10, news of MassMutual purchasing $100 million worth of Bitcoin from their general account further backed Bitcoin as an asset that’s worth considering.

It is worth mentioning that investment from any insurance company is at the back of thorough due diligence since funds used are for paying claims from policyholders. Their investment, therefore, signals that Bitcoin is safe and liquid enough even for the largest and most conservative institutions in the world to allocate their funds.

MassMutual bought their coins through NYDIG, a fund management firm that manages over $2.3 billion of Bitcoin and other cryptocurrencies. At the same time, the insurance company acquired a $5 million minority stake in the fund.

Despite the Bitcoin price plunging, more holders are withdrawing coins from centralized exchanges to non-custodial wallets according to Glass Node.

Bitcoin Price Prediction

The Bitcoin price is down eight percent week-to-date.

For the first time in over two months, the Bitcoin price is also trading below the middle BB.

Accompanying the bear breakout pattern of Dec 8 was high trading volumes. Subsequent bars also confirmed bears of that bear candlestick.

However, since prices are trading inside the high-volume bar of Nov 26, buyers have a chance. A break above $20k—as aforementioned, could trigger another wave of FOMO towards $25k.

Conversely, losses below Nov 26 lows of $16k—the 38.2 percent Fibonacci retracement level of October to November trade range, may cause holders to liquidate their assets. In that case, the odds of the BTC/USD pair falling back to $14k completing a retest is highly likely.

Historically, the BTC/USD price does find support within the 50 to 78.6 percent Fibonacci levels whenever it corrects after rallying. Therefore, deeper losses to $12k cannot be discounted despite market confidence.

Disclaimer: Opinions expressed are not investment advice. Do your research.