- Bitcoin manages to stay in the green despite the reversal from the high formed around $7,642.
- The falling wedge pattern’s breakout continues to positively influence the price as the target stays on $8,000.
Bitcoin lead market recovery on Sunday, which allowed cryptocurrencies to post gains the weekend before Christmas generally. Following last week’s breakout from the lethargic movement within the range of $7,000 to $7,250, BTC blast through several barriers. For instance, the $7,400 seller congestion zone did little limit the rally as Bitcoin sailed through $7,500 and $7,600. Although the price came close to $7,700, a high was formed around $7,642.
At the time of the press, Bitcoin is trading at $7,541 after a minor reversal. Currently holding as the short term support is the 23.6% Fib retracement level taken between the last swing high of $10,543 to a swing low of $6,426 around $7,407. Moreover, the 200 Exponential Moving Average (EMA) on the 4-hour chart is within the same region and further strengthen the support at $7,407.
BTC/USD 4-hour chart
Bitcoin has the potential to correct high as we near the New Year, especially if the bulls can continue to take advantage of the falling wedge pattern breakout. In my opinion, $10,000 is quite a conservative prediction for the first quarter of 2020. Besides, Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, believes that BTC is heading towards $10,000 in 2020.
Bitcoin in 2020: $10,000 Appears to Be More Likely Than $5,000 —#Bitcoin should continue to advance in a consolidating bull market, in our view, with maturation of the first-born crypto in the next decade the primary distinction vs. the current one. pic.twitter.com/JxEAhArwTf
— Mike McGlone (@mikemcglone11) December 19, 2019
The RSI is currently retreating from the overbought region after touching highs around 78.18. The retreat suggests that Bitcoin is overbought and needs to correct the market imbalance. However, the buyers can react by defending $7,500 support and push towards $8,000 in the near term.
Bitcoin Key Levels
Spot rate: $7,551
Relative change: 35.59
Percentage change: 0.52%