BTC Price Analysis: Bitcoin Aiming To Retest $20,000 Before It Starts Another Rally

Published December 21, 2020 | Updated December 21, 2020

BTC Price Analysis: Bitcoin Aiming To Retest $20,000 Before It Starts Another Rally

Key Highlights:

• Bitcoin lost 3.7% today after facing rejection around $24,300 level – the current high
• The long-term bullish trend may suspend if the key $20,000 level fails to act as a support
• A break above the current ATH would validate more increase for the giant coin

Bitcoin Price Analysis

Bitcoin sets another massive all-time-high record yesterday at $24,300 on BitStamp following an impressive 40% gains under a week. This rally was followed by a big shot above $20,000 last week. Although the leading cryptocurrency seems to have exhausted momentum around this new ATH after a three-day consolidation. The price just dropped to $22700 at the time of writing.

BTC/USD – 4H Chart by TradingView

However, Bitcoin is still looking bullish on the long-term trend but we may see a deep correction to around $20000 resistance-turned-support level before rebounding. But the price is likely to face key psychological support at $22000 and $21000 before it further drops.

The latest drop was triggered after Bitcoin reached overbought zone on the 4-hours technical RSI indicator. It is now looking for support around the 50 level. If this level fails to provide support, we can expect a further loss to RSI 30 level – where a rebound is most likely to come into play. The MACD indicator is similarly oscillating downward – although still in its positive zone.

In case Bitcoin manages to bounce back from any of these mentioned key support levels, we should expect a massive rally towards $30000 level (where a new ATH is likely) in no time. Along the way, resistance may also come around $26000 and $28000 after surpassing the current $24300 high.

The current bearish actions may last for a while before we see a major recovery. A steep drop below the $17600 benchmark could set a mid-term bearish for Bitcoin. For now, the trend is still in favor of the bulls.

Key indicators:

Resistance Levels: $24300, $26000, $28000
Support Levels: $22000, $21000, $20000

Current Rate: $22700
Price Change: -3.7%
Trend: Bullish
Volatility: High

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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