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Bitcoin Price Prediction: After a brief period of consolidation around $44K, Bitcoin price struggled to surpass a key resistance level, failing to hit $45K. This led to a sharp decline in prices at the start of the week, indicating a bearish trend for the week’s opening. Despite this, the technical analysis suggests that the current pullback might be a retesting phase, hinting at a potential rebound. The critical question now is whether Bitcoin will close the year above $45K or fall below $40K. Let’s explore this further.
Also Read: Top Reasons Why You Should Buy Bitcoin (BTC), Shiba Inu (SHIB) In December
Is BTC Heading to $50000?
- The pullback retests the broken resistance trendline of a previous rising channel.
- The daily chart shows a potential formation of a bullish reveal candle morning star pattern
- The intraday trading volume in Bitcoin is $23.5 Billion, indicating a 23% loss.
With a persistent uptrend in 2023, the Bitcoin price trajectory maintains a bullish approach with a higher low formation leading to a rising expanding channel breakout. Following the multiple rebounds, the breakout rally reached the $44K mark, leading to a market-wide rally.
However, the uptrend momentum slowly fizzles down to a sideways move and eventually leads to a trend reversal. With a double top reversal in a shorter time frame, Bitcoin enters a shortfall phase to retest the broken levels.
With a long tail formation, the daily candle retests the $40K mark and bounces back to the $42K level. Currently, Bitcoin trades at $42000 and marks a successful retest if the prices sustain above $4K.
Therefore, a post-retest recovery above the trendline in the coming days would give a convincing signal of a strong comeback. In such a case, the buyers can potentially drive the price up by 15% to reach around $50,000.
Key Levels to Watch
During the recent two-month rally, Bitcoin experienced several corrections, typically serving as a recuperation phase to regain bullish momentum for further advances. Interestingly, these pullbacks often found reliable support at either the 23.6% or 50% Fibonacci retracement levels. The current correction, which is maintaining above the critical 50% Fibonacci level, suggests that the long-term bullish trend is intact. This positioning above a key support level indicates a strong potential for a rebound, reinforcing the overall bullish outlook for BTC’s future trajectory.
- Bollinger band: A reversal from the upper boundary of the Bollinger band indicator reflects the sellers controlling the short-term trend.
- Moving Average Convergence Divergence: The rise in selling pressure is evident as the MACD and signal lines prepare a negative crossover.
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