Bitcoin in a precarious situation: To dive to $18,000 before the final approach to $20,000

Published December 3, 2020 | Updated December 3, 2020

GBTC-3iQ-Galaxy-Digital

Bitcoin in a precarious situation: To dive to $18,000 before the final approach to $20,000

  • Bitcoin is on the cusp of a breakdown to $18,000 before resuming the uptrend to $20,000.
  • On-chain metrics reveal a single bump, slightly above $19,000 that must come down to pave the way for gains to higher levels.

Bitcoin appears to have a clear path to the coveted $20,000. However, attempts to break out to the higher levels have proved unsuccessful in the last 48 hours. Resistance has continued to intensify under $19,500.

At the time of writing, BTC/USD is teetering slightly above $19,000 amid developing bearish pressure. The desire among the bulls is to hold above the ascending parallel channel’s lower boundary support.

However, the most probable price action is to drop toward $18,000 before a significant reversal comes into the picture. Beneath, $19,000, the 50 Simple Moving Average and the 100 SMA on the 4-hour chart are in line to offer support and absorb some of the selling pressure.

BTC/USD 4-hour chart

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

Short term technical analysis reinforces the bearish technical picture with the Relative Strength Index gradually moving towards the midline. Moreover, it is doubtful that the channel’s lower boundary support will stay intact, especially now that sellers are pushing to regain full control over the price.

Meanwhile, IntoTheBlock’s IOMAP chart reveals that the flagship cryptocurrency is facing a tough resistance between $19,021 and $19,079. The seller congestion must be weakened before BTC blasts massively to $20,000. Here, nearly 694,000 addresses had previously bought roughly 458,000 BTC.

Bitcoin IOMAP model

Bitcoin IOMAP chart
Bitcoin IOMAP chart by IntoTheBlock

On the downside, the king of cryptocurrencies is sitting on areas with immense support, likely to invalidate the bearish outlook eyeing $18,000. For now, the most robust anchor zone lies between $17,882, $18,442. Here, approximately 579,000 addresses had purchased nearly 368,000 BTC. Therefore, consolidation might take precedence between $18,500 and $19,000 before a significant breakout comes into the picture.

Bitcoin intraday levels

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Spot rate: $19,050

Relative change: 170

Percentage change: -0.9%

Trend: Bearish

Volatility: Low

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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John Isige 1059 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
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