Mohith AgadiThe Bitcoin (BTC) bulls chased $24,000 twice yesterday, December 23, 2020. BTC is currently facing strong selling pressure, with BTC’s all-time high (ATH) only a few hundred dollars away. Technical indicators show Bitcoin is capable of conquering new ATH, and it kept trying to crack the resistance at $24,000 daily. In the event of a major correction in its price, Bitcoin can count on daily supports which have risen well in recent days, especially the institutional interest.
A decompressed market, uninhibited bulls for a new ATH?
Bitcoin has made a foray above $24,000 yesterday. The rejection briefly drove BTC below $23,000, before rising to over $800 in just 30 minutes, chasing $24,000 again. The $24,000 is a major resistance line for bulls that must break it in order to claim new ATHs.
Bitcoin is trading at $23,381 at the time of writing. The BTC could end this day as well with a green candle, a red candlestick, or a Doji. The fall of Bitcoin during the last days has made it lose the $23000 level, allowing the markets to decompress on a daily basis.
The daily RSI (Relative Strength Index) fell to 69. It was well above 70 when BTC hit a new ATH above $24,000. Bitcoin, however, remains overbought on a weekly and monthly basis with RSI rising to 83 and 78 respectively.
Bitcoin appears to have strong resistance at $20,000
The 20-day moving average has now risen above $20,500, strengthening the resistance of $20,000. In a shorter time frame, bulls may benefit from support at the 5 and 10 day moving average levels of $23,450 and $22,320 respectively.
Sumit Gupta, CEO & Co-founder of CoinDCX said, “Despite the sell-off in XRP due to the recent news about the SEC lawsuit, we’ve seen almost all cryptos suffer except Bitcoin. In my opinion, I don’t think there is going to be any “major” correction in Bitcoin’s price. I believe it is going to consolidate for some time before the price starts rallying again!”
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