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Bitcoin Weekly Trade Analysis: Is BTC Price Set for a 20% Drop Ahead of Yearly Close?
The cryptocurrency market is entering the final stretch of the year, and it seems that Bitcoin’s price action is about to take a significant turn. In this weekly trade analysis, we will explore whether the current momentum suggests a potential 20% drop ahead of the yearly close.
As the weekend approaches, the BTC trading volume has surged significantly compared to the previous couple of days, indicating an increased interest among market participants. However, the buying pressure is nowhere near what would be required to drive prices higher in the short term. This lack of interest from both sides, with neither bulls nor bears exerting sufficient influence, highlights a concerning trend.
Recent price action has seen Bitcoin fail to secure levels above resistance, weakening the bullish stance and paving the way for further losses. The star token’s failure to break these levels has led to breaking down below pivotal supports, causing significant selling pressure that could be exacerbated in the coming days.
The current technical analysis suggests a possibility of a bounce towards the lower support of the falling wedge as Bitcoin moves closer to its yearly close. Two key levels have emerged: $95,767 and $93,211, serving as interim resistance and support respectively. Breaking either of these levels will significantly impact the yearly close’s trajectory.
Moreover, the RSI (Relative Strength Index) has been in a descending trend, suggesting that the bearish influence may continue to dominate, prompting potential long-term support levels at $71,000 to $81,000 and even $65,000 if price action extends further south. In contrast, any close above these pivotal ranges will likely put Bitcoin on a path towards new all-time highs.
A crucial factor in determining the trajectory of this bearish trend is the token’s ability to maintain support levels. If Bitcoin can continue to hold its current levels and potentially bounce off the lower support of the wedge, we could see a more substantial short-term rally ahead of the yearly close.
However, considering the prevailing market conditions, it appears that the window for a buyback opportunity between $80,000 and $85,000 may provide a good long-term entry point. This area offers a chance to accumulate the star token at a relatively discounted price, providing a higher potential for gains in the future.
In conclusion, the current market trend suggests a possibility of a 20% drop ahead of the yearly close, which could be exacerbated by a failure to break key resistance and support levels. Nonetheless, it is essential to remember that cryptocurrency markets are notoriously unpredictable, and even the most robust analysis can be turned on its head in an instant.
As always, our goal remains to provide accurate insights into the crypto space while maintaining a balanced perspective on market trends.
Source: coinpedia.org
