Analyst: “Bitcoin [BTC] Set To Show Clear Direction In January”

Bitcoin

Analyst: “Bitcoin [BTC] Set To Show Clear Direction In January”

  • Bitcoin (BTC) drops to intraday lows of $6,440 USD as selloff stretches to the third day.
  • BTC/USD to show clear direction early next year, analyst says
  • Is a bullish divergence on the cards in 2020?

The total cryptocurrency market capitalization dipped below the $180 billion mark for the first time since May this year as the selloff persists. Bitcoin, the top cryptocurrency lost 5% in the past 24 hours to trade at $6,669 USD across major exchanges, as at time of writing. The fall in BTC’s price affected the wider market as top altcoins fell heavily.

In the past 48 hours, the total market capitalization has dropped over $14 billion as top altcoins including Ethereum, XRP, Litecoin and Bitcoin Cash lost 6%, 7%, 3% and 8% in the past 24 hours.

BTC/USD drops towards support at $6,400 region

A look at the higher time frames shows a possible move lower towards the $5,000 USD for Bitcoin as the volumes on the pair remain low. Falling through the bearish channel, BTC/USD bears target the support level below the $6,000 mark as selling pressure intensifies on the pair. According to PickACrypto, a cryptocurrency trading analyst, the price pattern will clearly form in early January as a breakout from the falling wedge ensues.

A breakout below the support level spells doom for BTC bulls as price and expect the priceto drop towards the $5,500 USD support levels. Furthermore, with the weekly RSI bouncing off the oversold region bar, the current short spike in BTC’s price may be a bull trap.

BTCUSD
Source TradingView

A clear (bullish) direction?

While the BTC/USD buyers have had a rough period in the past two months or so, since the October uptrend caused by Xi’s comments, Scott Melker, a crypto trader and analyst, believes an upcoming bull run is on the cards with lower timeframe chart indicators showing signals of exhausted sellers.

In the daily (& hourly) charts, the relative strength index shows a highly oversold market which points to a possible bullish divergence. A push above the $7,700 USD resistance level will be the key target for bulls with a potential bullish engulfing candle forming on the lower bearish channel support on the 4H candle chart.

Can bulls take control of the market come 2020?

Summary
Analysis: “Bitcoin [BTC] Set To Show Clear Direction In January”
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Analysis: “Bitcoin [BTC] Set To Show Clear Direction In January”
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• Bitcoin (BTC) drops to intraday lows of $6,440 USD as selloff stretches to the third day. • BTC/USD to show clear direction early next year, analyst says • Is a bullish divergence on the cards in 2020?
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Author: Lujan Odera

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

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Lujan Odera 225 Articles

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

Follow Lujan @