Kataryna Habeliia December 10, 2020
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- 1 Selling pressure intensifies Bitcoin`s fall below $ 18,000
- 1.1 Bitcoin`s fall below 18,000 — an opportunity to join for new investors
- 1.2 Bitcoin’s upside potential is limited by sellers
Selling pressure intensifies Bitcoin`s fall below $ 18,000
In the middle of the week, bitcoin was trying to recover from the fall, in which it updated levels below $ 18,000. Support set at 200 Simple Moving Average on 4-hour chart saved bulls from paralysis.
The flagship cryptocurrency has already returned some of its lost positions above $ 18,000, while the downward parallel channel discussed on Wednesday is still preserved. At the time of writing, BTC / USD is trading at $ 18,450, fighting an uphill battle to overcome the huge 100 SMA sellers overload combined with the average channel border.
Bitcoin`s fall below 18,000 — an opportunity to join for new investors
There is a high probability that Bitcoin will continue to retreat before a significant recovery and possibly confirm support at $ 18,000. Trading around $ 18,000 will allow more new investors to join the market in anticipation of a new rally.
If demand for BTC rises, the price could enter an impressive trajectory similar to the late November rally that led to a new all-time high ($ 19,927 on BitXmi).
Bitcoin’s upside potential is limited by sellers
On the other hand, IntoTheBlock data using the IOMAP model shows that Bitcoin fluctuates between areas of intense support and resistance. This means that the consolidation period may be delayed until there is any significant price movement.
At the moment, due to the accumulation of sellers, the upside potential of BTC is limited to the range between $ 18,616 and $ 18,789. A break above this resistance will cause Bitcoin to face another major hurdle between $ 18,963 to $ 19,137.
On the other hand, Bitcoin has solid support zones ranging from $ 17901 to $ 18442 and $ 17360 and $ 17901. It is doubtful that Bitcoin will pass through these zones, therefore, consolidation is possible soon.
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