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November 23, 2020
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Guide & Analysis

Bitcoin price analysis: BTC loses momentum as Wall Street investors demonstrate insecurity

Is $ 14,000 still a viable price target for Bitcoin?

Bitcoin’s price remains stuck below the key 0.618 Fibonacci level of $ 13,360 entering this week after a small bullish momentum arrived during the opening of traditional U.S. markets. Wall Street, for its part, is painted red. Bitcoin is trading for $ 12,976 at the time of this writing.

In shorter terms, it is clear that the general sentiment is still high, as the main asset continues to print higher funds. However, business volumes are starting to fall and there is an increasing divergence between the RSI and the price action, which suggests that things may fall soon.

Since the news from Paypal was released on October 21, more than $ 33 billion has flooded the crypto space and helped dominate the leading asset market to reach more than 61% for the first time since August 2, 2020.

Bitcoin price levels to watch for in the short term

On the weekly BTC / USD chart, we can see that the main area of ​​resistance (zone shaded in red) that stands in the way of Bitcoin is now the mentioned Fibonacci level and the June 24, 2019 high of $ 13,950.

This higher price point also overlaps the superior resistance of the broadening wedge pattern (yellow lines) that BTC has been tracking since April 27, which makes it a particularly strong level for bulls to overcome.

If momentum builds up again, however, and the bulls manage to set a new 490-day high, then the next areas of resistance are likely to be somewhere around the $ 14K psychological mark, the $ 14,400 and $ 14,600 level.

If the strong bearish divergence in the 4 hour period ends (light blue lines), we should expect the first support area on the MME 50 at $ 12,600, followed by the first main support area (shaded green area) between $ 12,300 and $ 11,950 . Below that, we also have the 0.5 Fibonacci level at $ 11,400 and the support line of the broadening wedge standard of approximately $ 11K to halt any drop if prices fall further.

Total market capital: $ 401 billion

Bitcoin market capital: $ 243 billion

Bitcoin domain: 60.5%

* Coingecko data.

Weekly Chart – Bitstamp – BTC / USD

BTC / USD chart via Tradingview.

4-hour chart – Bitstamp – BTC / USD

  BTC

BTC / USD chart via Tradingview.

Source: CryptoPotato

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