Bitcoin (BTC) Price Prediction – December 20, 2020
On December 16, following the breakout above the psychological price level of $20,000, the market has been continuing. The breakout propels the price to reach a new high of $24,000. Conversely, if the bulls have failed to break the $20,000 resistance, the coin will suffer a bearish reaction. The coin will have a deeper correction.
Resistance Levels: $23,000, $24,000, $25,000
Support Levels: $13,000, $12,000, $11,000
The breakout on December 16 has signaled the resumption of the bull market. The bulls have also sustained the uptrend as there could have been a major selloff as Bitcoin tested the $24,000 resistance. During the weekend the price rose to $24,200 and pulled back. Nonetheless, in the past five days, BTC/USD has been trading marginally. There has been no significant price movement. The king coin has been fluctuating between $23,200 and $24,000. Meanwhile, Bitcoin is still trading above the 80% range of the daily stochastic indicating that the coin is in a strong bullish momentum.
Bitcoin (BTC) Indicator Reading
The daily stochastic and the RSI have all indicated that Bitcoin is trading in the overbought region of the market. The overbought condition implies that the BTC may fall. However, in the case of the daily stochastic, the overbought condition may not hold in a strong trend. In the case of the Relative Strength Index index, it measures the strength of the current trend whether there is enough room for a price to rally. As RSI reaches the overbought region there may be no room for price to rally.
Bitcoin price is trading and has reached $23,928 at the time of writing. The price may retest or break the $24,000 resistance. In the previous price action, BTC reached a high of $24,200 and pulled back. Meanwhile, if the recent high is convincingly broken and the bullish momentum is sustained the crypto is expected to reach the $25,000 mark.