Bitcoin bulls have resorted to a sideways move below the overhead resistance. Buyers' last push was at the high of $19,740 before the sideways move below $19,600.
December 7, 2020, Bitcoin is confined between $18,500 and $19,600. The current upside momentum will continue as long as the $18,500 support holds. There is a possibility of breakout or breakdown shortly as the price consolidates in a tight range.
For example, if buyers can push the price above $19,600 and $19,740 resistances, a rally above $22,000 is likely. On the other hand, if the bears break below $18,500, the breakdown will extend to $16,000 low. Today, BTC is trading at $19,259 at the time of writing. Since December 1, the price has been fluctuating and retesting the critical range-bound levels. The bulls and bears seem to have reached equilibrium as there has been price stability in the current price range.
Bitcoin has fallen to level 60 of the Relative Strength Index period 14. BTC was earlier in an overbought region since October. The recent bearish momentum was a result of the recent rejection at the overbought resistance. The RSI is sloping horizontally indicating the sideways trend. The king coin is likely to rise as the price is above the SMAs.
Key Resistance Zones: $13,000, $14,000, $15,000
Key Support Zones: $7,000, $6,000, $5,000
Bitcoin is currently in a sideways move as a result of overwhelming selling pressure. Nonetheless, the Fibonacci tool has indicated an upward movement of the coin. On December 1, a retraced candle body tested the 78.6 % Fibonacci Retracement level. This indicates that Bitcoin will rise but will reverse at level 1.272 Fibonacci extensions. In other words, Bitcoin will rise and reverse at $20,923.20.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.