My Prediction:
The current downtrend that started after all time highs on the 10/11/21 will continue until the $40,500ish level where it will meet resistance and continue in an uptrend. The resistance will be met around mid to late January.
Why?
1. The golden cross of the 50 and 100 EMA that recently happened (25/12/21) mirrors the one that happened in May therefore the severity of the current downtrend may become worse echoing the steepness of the downtrend at that time.
2. the area of resistance between $47,200 and $46000 has been tested multiple times and even shortly broken. Multiple tests of resistance can often lead to a breaking of that resistance and the next major support is around $40,500.
3. Crypto influencers have often commented on "$100,000 BTC" leading any further drop in the price of BTC to be highly attractive to certain retail investors.
Though I doubt that BTC will hit the $100,000 mark early next year, I do see some propensity for new all time highs by March 2022 around the $80,000-$85,000 mark.
4. When the price of BTC has broken the 200 MA in a downtrend over the last year, it seems to have dropped even further, hence why it will drop further to the next major resistance at $40,500ish.
DISCLAIMER: I have only been looking at the whole area of Technical analysis for a few weeks so am not highly experienced. It would mean a lot to me if people who are more experienced would critique my thoughts and give me tips on improving my skills in this area.
Thanks! Have a great new year!
The current downtrend that started after all time highs on the 10/11/21 will continue until the $40,500ish level where it will meet resistance and continue in an uptrend. The resistance will be met around mid to late January.
Why?
1. The golden cross of the 50 and 100 EMA that recently happened (25/12/21) mirrors the one that happened in May therefore the severity of the current downtrend may become worse echoing the steepness of the downtrend at that time.
2. the area of resistance between $47,200 and $46000 has been tested multiple times and even shortly broken. Multiple tests of resistance can often lead to a breaking of that resistance and the next major support is around $40,500.
3. Crypto influencers have often commented on "$100,000 BTC" leading any further drop in the price of BTC to be highly attractive to certain retail investors.
Though I doubt that BTC will hit the $100,000 mark early next year, I do see some propensity for new all time highs by March 2022 around the $80,000-$85,000 mark.
4. When the price of BTC has broken the 200 MA in a downtrend over the last year, it seems to have dropped even further, hence why it will drop further to the next major resistance at $40,500ish.
DISCLAIMER: I have only been looking at the whole area of Technical analysis for a few weeks so am not highly experienced. It would mean a lot to me if people who are more experienced would critique my thoughts and give me tips on improving my skills in this area.
Thanks! Have a great new year!