Bitcoin downward pressure unstoppable, losses to $18,000 eyed ahead of upswing to $20,000

John Isige Bitcoin News PublishedDecember 10, 2020 | ModifiedDecember 10, 2020

Bitcoin-Institutional-Buying

Bitcoin downward pressure unstoppable, losses to $18,000 eyed ahead of upswing to $20,000

  • Bitcoin’s recovery hits a massive barrier at the 100 SMA and the descending channel’s middle boundary.
  • BTC/USD likely to embrace consolidation based on on-chain metrics.

Bitcoin has struggled to recover from the mid-week retracement that saw it refresh lower levels under $18,000. Support established at the 200 Simple Moving Average on the 4-hour chart saved the bulls from a breakdown that would have been paralyzing.

The flagship cryptocurrency has already recovered some of the lost ground above $18,000. Meanwhile, the descending parallel channel discussed on Wednesday is still intact. BTC/USD is trading at $18,450 at the time of writing while fighting an uphill battle to overcome the immense seller congestion at the 100 SMA in conjunction with the channel’s middle boundary.

A big chance exists for Bitcoin to retreat further, perhaps confirm support at $18,000 before a significant recovery comes into play. Trading around $18,000 will allow more investors to join the market from the sidelines in anticipation of another rally.

If the demand for BTC balloons, the price could enter into an impressive trajectory, probably mimicking the majestic upswing in late November that led to the new all-time high ($19,927 as seen on Coinbase).

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

On the other hand, on-chain data from IntoTheBlock, using the IOMAP model reveals that Bitcoin is dancing between areas of intense support and resistance. This means that a consolidation period may come into the picture before any significant price movements occur.

For now, BTC’s upside is hampered by the seller congestion between $18,616 and $$18,789. A break above this resistance will see Bitcoin run into another massive hurdle running from $18,963 to $19,137.

On the flip side, Bitcoin is sitting on robust support areas, running from $17,901 to $18,442 and $17,360 and $17, 901. It is doubtful that Bitcoin will slice through these zones hence the possibility of consolidation taking over in the near term.

Bitcoin IOMAP model

Bitcoin IOMAP chart
Bitcoin IOMAP chart by IntoTheBlock

Bitcoin intraday levels

Spot rate: $18,450

Relative change: -86

Percentage change: -0.5

Trend: Bearish

Volatility: Expanding

 

Post your comment...
John Isige 854 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
Follow John @