The price of Bitcoin was able to climb from $17,000 to more than $21,200 in 2 days, and now an important resistance is blocking its way. On the other hand, maintaining the $18,000 level in a possible price correction can determine the future trend of the market.
Dear users of the blockchain country, this article is not an investment recommendation and is only a translation of the author’s analysis.
According to Mihan Blockchain and quoted by Daily Hudel, a well-known analyst with the nickname Credible in a tweet He announced that after the recent rise in the price of Bitcoin, a price correction towards $18,000 is needed.
The analyst added that BTC’s behavior near the $18,000 level will be crucial. If the price is maintained above this level, a higher floor (higher low) will be recorded for Bitcoin in the 4-hour time frame, which is considered a bullish signal from the point of view of price action. Credible believes that if the price of Bitcoin crosses the resistance of $21,500 (either now or in the next upward wave), the upward rally of Bitcoin will begin.
Earlier, in a separate post, we discussed the prediction of famous analysts about the price of Bitcoin in 2023. One of these analyzes belonged to an analyst named Cred, who proposed 2 conditions for ending the long-term downward trend:
1- A weekly candle above $19,400 should be registered.
2- Even temporarily, the price will increase above 21,000 dollars to form a higher ceiling.
The first bet will be fulfilled tonight if the price does not fall below $19,400, and the second bet was fulfilled last Friday. This analyst predicted the following trajectory for Bitcoin price. Here too, like Credible’s opinion, we should have a pullback priced around $18,000.
Credible on December 20 a tweet He compared the price of Bitcoin at that time with September 2020 (September 99). In September 2020, a few months after the start of the Corona epidemic and the fall in the price of Bitcoin, the price had recovered to around $12,000, and finally another price drop to around $9,800 led to the last fundamental correction of Bitcoin before To happen from the beginning of the upward rally.
Credible believes that the fall in the price of Bitcoin from around $21,000 during the FTX crash played the same role for BTC, and the last stage of the correction occurred during a bearish 5-wave Elliott structure. He believes that the price drop to $16,256 on December 19 (Azar 28) has also ended the 5th downward wave. This comparison can be seen in the graph below. The left image is for 2020 and the right image is for the current situation.
This analyst also predicted in describing the behavior of Bitcoin after the bullish rally that we will witness the formation of a new price ceiling for Bitcoin during a bullish 5-wave Elliott structure. If the bottom of the BTC price has happened, we can say that we are now in wave 1 of the rise. Credible’s price prediction chart has the price around $150,000 at its new high.
Do you think the overall movement trend of bitcoin price has become upward? Share your opinion with us below this post.
Is the Bitcoin price trending upward?
- If the level of $18,000 is maintained in the possible correction of the price of Bitcoin, that price reduction can be considered important as a pullback to this broken level and expect the continuation of the upward trend. Otherwise, BTC will re-enter the range of $15,500 to $18,200, and the bears will once again have a chance to regain their strength.