Bitcoin Declines and is Overwhelmed by Selling Pressure as Buyers Recoup at $17,885 Low

Dec 09, 2020 at 10:33 // News
Coin Idol
Analysts believe the recent breakdown was majorly the cause of miners selling BTC

For about two weeks, Bitcoin bulls have been struggling to break the $19,740 to $20,000 resistance zone. After four failed attempts, the BTC price was finally repelled.

Traders believe that the breakdown will extend to the low of $16,000 if the selling pressure persists. Analysts believe the recent breakdown was majorly the cause of miners selling BTC. Another possible reason is the exchanges selling their earnings from fees charged.

The $18,500 support which has been proving upside momentum has been broken by the bears as the coin continued to fall. Bitcoin is trading at $17,920 at the time of writing. As the downward movement continues, Bitcoin will find support at either the $17,400 or $16,600 price levels. It is likely the bulls will buy the dips to push the crypto upward. However, if BTC fails to find support at these levels, the coin will drop to $15,800.                                      

Bitcoin indicator reading

Bitcoin has fallen to level 50 of Relative Strength Index period 14. It indicates that there is a balance between supply and demand. Presently, the BTC price has broken below the 21-day SMA and if it breaks below the 50-day SMA, the downtrend will resume. In the lower time frame, BTC is below the 20% range of the daily stochastic. The crypto is in the oversold region as buyers emerge.


Key Resistance Zones: $13,000, $14,000, $15,000

Key Support Zones: $7,000, $6,000, $5,000  

What is the next direction for BTC/USD?

On December 8, Bitcoin fell to the $18,500 support. The price corrected upward and retested the 61.8% Fibonacci retracement level. It indicates that the market will fall and reach level 1.618 Fibonacci retracement level. From the price action, the market has fallen to $17,885 as bulls buy the dips. BTC price is likely to move up.


Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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