Bitcoin Price is Expected to Fall over the Weekend

Kataryna Habeliia December 11, 2020

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Bitcoin price is expected to fall over the weekend

Bitcoin is likely to open the weekend session with a huge drop. For the past 48 hours, the bulls have been working hard to keep BTC above $ 18,000. The accumulation of sellers at the $ 18,500 level was a tough battle, which explains the ongoing correction.

At the time of writing, the flagship cryptocurrency is trading below $ 18,000, with selling pressure mounting. It seems that the bulls are treading on shaky ground, and, perhaps, are on the edge of a high cliff.

The descending parallel channel is still intact, but its lower boundary is currently under pressure. In the event of a break, BTC / USD will be forced to seek refuge at the 200 simple moving average (on a 4-hour chart).

A critical moment for Bitcoin price

If the fall will leave a critical moving average, we can expect a massive breakout to $ 16,500 (late November support). Currently, the path of least resistance runs south, which is mainly supported by the relative strength index.

On the other hand, Bitcoin’s movement is limited by the middle channel border combined with 100 SMA. Hence, a daily close below $ 18,000 would be a huge bearish signal strong enough to trigger massive sell orders.

It is important to keep in mind that the bearish outlook will not materialize if Bitcoin holds anchors at the 200 SMA and the lower boundary of the channel. Ending the day above $ 18,000 will show buyers that Bitcoin still has a chance to reach higher levels above $ 19,000.

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