Bitcoin (BTC/USD) Outlook:
Can Bitcoin Bulls Maintain On?
Bitcoin continues to keep up the upward trajectory that has prevailed since March 2020, buoyed by US Dollar weak point and world financial situations. Though the current rally has seen a rise within the demand for Bitcoin and different major cryptocurrencies, the sustainability of the bullish development is being questioned after costs reached an all-time excessive on December 1, 2020, leading to BTC/USD surging over 160% within the year-to-date.
Recommended by Tammy Da Costa
Download Your free Bitcoin Trading Guide
Whereas fundamentals could play a task in figuring out the subsequent huge transfer, with US stimulus talks and issues surrounding free financial coverage weighing on investor sentiment, trading psychology will doubtless be a further driver of price action, with many fearing the reoccurrence of 2017’s occasions, when the ‘Bitcoin bubble’ ultimately burst.
Bitcoin Worth Motion Seeks Path
After reaching an all-time excessive of $19,861, the momentum of the uptrend subsided, pushing worth motion right into a confluent zone, between the Fibonacci retracement ranges (between September 2020 and December 2020) which proceed to carry as support and resistance. On the each day time frame, worth motion stays throughout the parameters of the Bollinger Bands, whereas the Relative Strength Index (RSI) hovers round 60.
Recommended by Tammy Da Costa
What are the key Traits of Successful Traders?
Bitcoin (BTC/USD) Each day Chart
Chart ready by Tammy Da Costa, IG
Night Star Formation could Maintain Bulls at Bay
In the meantime, the formation of an Evening Star on the two-hour chart suggests {that a} bearish reversal is possible, however so long as the uptrend stays intact a bullish continuation can’t be dominated out.
Bitcoin (BTC/USD) 2-Hour Chart
Chart ready by Tammy Da Costa, IG
For now, the 20-period Moving Average (the central line utilized in Bollinger Bands) continues to supply support at $18,636. A break beneath this stage may see the 23.6% retracement stage coming into play as help at $17,515.64. Nevertheless, if bulls are capable of preserve management, the December excessive could as soon as once more be examined, in addition to resistance on the key psychological level of $20,000.
— Written by Tammy Da Costa, Market Author for DailyFX.com
Contact and comply with Tammy on Twitter: @Tams707
