Bitcoin Price Analysis Dec 21: BTC Uptrend Intact, Can Buyers Hold This?

Bitcoin price analysis

Bitcoin Price Analysis Dec 21: BTC Uptrend Intact, Can Buyers Hold This?

Bitcoin price gained traction and broke the $4,000 and $4,080 resistances recently against the US Dollar. BTC/USD is currently consolidating and it must hold the $3,900 uptrend support.

Important Points:

  • Bitcoin price traded as high as $4,138 and later corrected lower.
  • BTC is following a major ascending channel with support at $3,880 on the 2-hours chart.
  • The price must stay above the $3,900 and $3,880 support levels to avoid a downside break.

Bitcoin Price Analysis

In the last analysis, we discussed that bitcoin price is likely to extend gains above the $3,700 resistance zone against the US Dollar. BTC/USD did gain bullish momentum and broke the $3,700, $3,900 and $4,080 resistance levels.

The 2-hour chart indicates that the price surged from the $3,630 low and settled well above the 100 simple moving average (2-hours). The price traded to a new weekly high at $4,138 and later started a downside correction.

Bitcoin price analysis
Chart Source by TradingView, Binance

The price recently declined below the 23.6% Fib retracement level of the last wave from the $3,630 low to $4,138 high. However, there is strong support formed near the $3,880 and $3,900 levels.

Moreover, there is also a major ascending channel in place with support at $3,880 on the same chart. Finally, the 50% Fib retracement level of the last wave from the $3,630 low to $4,138 high is also near the $3,880 level.

Therefore, as long as the price is above the channel support and $3,880, it remains in an uptrend and it could bounce back above $3,950 and $4,000 in the near term. In the mentioned bullish case, the price may even break the $4,180 barrier and trade towards the $4,440 level.

On the other hand, a downside break below $3,880 could clear the path for an extended downside correction towards the $3,630 swing low. Below $3,630, the price will most likely test $3,510 and the 100 SMA.

Overall, bitcoin price stays in an uptrend as long as it is above $3,880. If it fails, sellers could take back control and push BTC price back towards the $3,630 or $3,510 support.

Summary
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Bitcoin Price Analysis Dec 21: BTC Uptrend Intact, Can Buyers Hold This?
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Bitcoin price gained traction and broke the $4,000 and $4,080 resistances recently against the US Dollar. BTC/USD is currently consolidating and it must hold the $3,900 uptrend support.
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Author: Latika Mehrotra

Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]

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Latika Mehrotra 71 Articles

Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]

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