Bitcoin’s Direction in 2020 will be Given by its Reaction to this Critical Level
BTC bears have taken over following some moments of trading on the sideways close to $7,200, thereby sending the price to a major support level. However, the bulls were able to take a stand at this level but it is still not clear whether it will keep holding on in this weekend.
According to an analyst, BTC support level at the moment is Bitcoin’s “pivotal level”, and the manner of reaction to this level may establish its direction for the first part of the coming year.
At press time, the price of BTC was on the downside by 2 percent at $7,100, representing a remarkable downtrend from its daily highs of $7,300 established in the previous day.
It has been able to move to the main support level greatly held since Bitcoin declined to lows of $6,500 at the end of November. After Bitcoin bounced from this level, it has remained over $7,000, as buyers have been strong.
A crucial observation by a renowned analyst on Twitter (TraderXO) is that this level seems to be much more than a near-term support level. According to the analyst, a close under this level may take the cryptocurrency BTC to $6,500.
— TraderXO (@TraderX0X0) December 14, 2019
The buyers need to take the price to $7300 for Bitcoin to return to the mid-$7,000 zones.
According to another renowned analyst on Twitter, Josh Olszewicz, the price action of BTC at the moment is in favor of the likelihood of additional declines.
currently w/bearish forecast
price > 7300 would be above 20SMA which would flip sentiment bull
eventual resolution of all moves of this caliber have resulted in initial 20%+ price swing pic.twitter.com/VorbN1XpjJ
— Josh Olszewicz (@CarpeNoctom) December 14, 2019
Market participants will have insights into the trend of BTC in the remaining days of 2019, as we move to the next year because a move under $7,000 may lead to a fresh major downtrend to remarkably additional losses.
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