The Bitcoin price continued to increase significantly over the Christmas holidays and has since shot up by 25 percentage points. A new all-time high is not unlikely. This bullish development also caused the market dominance of the key currency to rise to a new high for the year of 72.01 crypto key currency.
After the BTC price generated a new all-time high in the previous week and peaked at USD 24,298, investors took advantage of the bullish momentum in the market and rose to a new all-time high above USD 28,000 yesterday, Sunday, December 27th . Starting from this price level, the first profit-taking began, which allowed The News Spy to consolidate to currently USD 26,715. After this tremendous price increase, the reserve currency is currently catching some air and reducing its overbought condition. The course correction towards USD 20,000 mentioned in the previous week’s analysis has not yet materialized. Instead, a new future gap formed, which is only closed with a price correction up to USD 23,710.
Bullish scenario (Bitcoin price)
The price development of the key currency Bitcoin can still be viewed as very bullish. Although the BTC rate corrected its new all-time high by around 6 percentage points in the last 24 hours to currently USD 26,727, it would therefore be presumptuous to speak of a reversal. As long as the BTC price is trading above USD 24,298 and preferably north of the previous day’s low at USD 25,752, the chances of another attack in the direction of the all-time high are quite good. If the bulls manage to break this chart mark upwards, the next important price target in the area of the 161 Fibonacci extension from the monthly chart at USD 29,748 moves into the focus of investors.
At this chart mark, renewed profit-taking is to be expected. If the bulls manage to let the rate of the key currency rise above 30,000 USD in the coming trading days, a march through to the maximum price target for 2020 at 35,075 USD is also conceivable. This is where the 361 Fibonacci extension of the current upward movement runs. If the demand for Bitcoins continues unabated at the beginning of the coming year, a continuation of the bullish price rally towards USD 40,407 and a maximum of USD 43,703 cannot be ruled out either. As long as the BTC rate does not correct back below USD 22,000 and a maximum of USD 19,884, the chances of a price increase beyond USD 30,000 are good.
Bearish scenario (Bitcoin rate)
The bears are currently unable to get a foot on the ground. Any efforts by the sellers to correct the price of Bitcoin back towards USD 20,000 have so far failed. Although the BTC rate corrected more than 7 percentage points to USD 22,600 within one hour of trading on December 23, it was able to avert a break in support at USD 22,000. From this level, the BTC price shot north again, increasing in value by more than 20 percent.
Only when the sellers manage to dynamically push the BTC rate below the previous day’s rise at USD 25,752 does the probability of the consolidation expand to the breakout level at USD 24,298 increases. If this support can also be undercut by the daily closing price and the BTC price slips back below the key support at USD 23,887, a price drop to the EMA20 (red) at USD 22,973 should be planned. This would initially close the new gap in the futures rate at USD 23,710.