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Bear Trap Encourages BTC Rally To Surpass $17400. – Crypto News

Published

2 years ago

December 21, 2022

Dripp

Published 6 minutes ago

Bitcoin Price Prediction: A bearish breakdown from $16825 support had created a sense of downtrend resumption in Bitcoin price. However, the prices struggle to sustain below the lost support projecting weakness in bearish momentum. Therefore, the market sentiment is still uncertain, and traders must wait for price sustainability above $16825 before entering the market.

Key Points:

The $16825 breakout sent the Bitcoin price for a 9% rally.
The BTC’s struggle to sustain above $16825 support will hint at indecisiveness among market participants.
The intraday trading volume in Bitcoin is $17.2 Billion, indicating a 22% loss.

Source-tradingview

The FUD surrounding Binance, the largest crypto exchange by volume, caused a significant downfall in the crypto market during Mid-December. Thus, the Bitcoin price witnessed a fresh sell-off from the $18400 resistance and plunged below multiple support levels to reach the $16430 low.

This downfall registered a 10.68% loss and, lastly, provided a decisive breakdown from the $16825 support. Losing just another support encouraged more selling pressure in the market and likelihood of a downfall to $15600.

However, on December 20th, the Bitcoin price witnessed a significant inflow and pushed the prices above $16825. A daily candle closing above-mentioned levels indicates buyers are trying to regain trend control.

Today, the BTC price shows 0.2% down, but the long lower price rejection attached to the daily candle reflects the price sustainability above the regained support. If the buying pressure persists, the price may rise by 3% up to $17350, followed by $18400.

Furthermore, the sellers trapped on a $16825 breakdown could get forced liquidated if they have a tight stop loss, which would increase buying orders for Bitcoin.

The market participants who believe the Bitcoin price will rise in the near future can enter an ongoing phase or, for a safer entry, the prices should break the 20-day EMA breakout.

technical indicators

RSI: despite a bullish breakout from the $16825 resistance, the RSI indicator, which projects the strength of the recent price action, remains below the neutral line. The indicator slope in bearish territory reflects a market participant’s remains bearish.

Bollinger bands indicator: The coin price trading between the midline and lower band indicates the sellers have the upper hand.

Resistance level- $17350 and $18000
Support level- $16825 and $16000

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian(at)coingape.com

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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