After a bullish surge with the taste of a new all-time high, Bitcoin’s value moved lower after the significant upgrade to its network. The price plunged below the $60,000 level on Thursday, while most top 10 cryptocurrencies have lost between 6 to 10 percent. The price fall has wiped out more than a hundred billion dollars from the crypto market while the market cap dropped from the new all-time high to nearly $2.5 trillion.
On the other hand, the divergent views of Democrats and Republicans in Congress regarding cryptocurrencies have made the market condition worse. During the Congressional hearing, Democrats mentioned that the stable coin tokens would destabilize the overall financial system. Moreover, the Joint Economic Committee chairman, Don Beyer (D-Va), said that the recent Squid Game token crash in Binance is being investigated that has no connection with the Netflix series.
As per the most recent price chart, Bitcoin has lost 17% in the last seven trading days, while the previous 24 hours loss is 6.08% with the trading volume of $41,750,199,285, 8% up from previous trading days. With 42.86% market dominance, bitcoin today is having a market capitalization above $1 trillion.
Let’s see the Bitcoin price prediction from Technical Analysis Bitcoin:
Bitcoin Moved Below Critical Support Levels
Bitcoin initiated the solid bullish pressure from the 40,000.00 demand area, pushing bulls to make a new all-time high at the 69,000.00 level. However, the situation has changed after creating the new ATH due to profit-taking. The price made a new higher high in the daily chart, while the MACD lines failed to follow it. As a result, it formed a regular divergence and moved below the dynamic 20 EMA with an impulsive bearish pressure.
The above image shows how the price became volatile in the ATH area, from where the selling pressure became aggressive. As the most recent price moved below the 59,500.00 support level with a bearish daily close, it is more likely to move down in the coming days. However, bullish correction is still pending, where any bearish rejection from dynamic 20 EMA would be a potential selling opportunity. On the other hand, a deep correction with a bullish rejection from 45000.00 to 40000.00 area would be a buying opportunity with the target of 75,000.00 psychological level.
BTC/USDT Ichimoku Cloud Analysis
According to the Ichimoku Kinko Hyo, the bearish trend became valid as soon as the price moved below the Kumo Cloud on 15 November with a bearish H4 close. The future cloud is bearish in the current chart, where the Senkou Span A is below the Senkou San B and heading down. Meanwhile, the Lagging Span is bearish and moved below the price chart, which shows intense bearish pressure.
The above image shows how the price moved below the dynamic Tenkan Sen and Kijun Sen with an impulsive bearish pressure. As a result, the gap between the price and dynamic Kijun Sen opened a possibility of mean reversion before making another bearish swing. In the indicator window, RSI moved lower and held a strong position below the oversold 30 levels. Therefore, any rebound in RSI would increase the bullish possibility in the price towards the dynamic Kijun Sen.
Based on the H4 BTC forecast, a bullish correction is pending where any bearish rejection from the dynamic Kijun Sen would be a selling opportunity towards the target of 50,000.00 level.
Bitcoin Intraday Price Action Analysis
In the H4 timeframe, BTC/USDT is trading with an intense selling pressure where the price moved below the 59,500.00 intraday support level with massive bearish pressure. Moreover, the selling pressure came with the support from intraday high volume levels where the most current level is above the price.
The above image shows how the selling pressure created a Hidden Divergence with the MACD Histogram with a bullish possibility in the price. Meanwhile, the dynamic 20 EMA and weekly VWAP are above the price and working as resistance. Therefore, any bullish pressure towards the 59,500.00 level and a rejection from the dynamic 20 EMA would be a selling opportunity in this pair. On the other hand, a break above the 59,500.00 level with a massive bullish H4 candle may invalidate the current bitcoin prediction and open rooms for testing the 65,000.00 level.
Is Bitcoin A Buy?
According to the BTC price prediction, the market context is still bearish for this instrument, where a minor bullish correction is pending. In that case, investors should closely monitor how the price reacts to the 59,500.00 area. Any bearish rejection from 59,500.00 to 62,000.00 levels would increase the current bearish pressure in the coming days. For long-term bitcoin investment and HODLers, the bitcoin price forecast may extend towards 53,000.00 to 50,000.00 levels from where a rebound may come.