Analysts warn of a possible bearish candle that could push BTC price as high as $ 44,000

It seems that the year-end rally that many cryptocurrency traders were hoping for will have to wait until 2022, as Bitcoin (BTC) bears gained the upper hand on December 28, pushing the price of BTC below the $ 48,000 support.

Data from Cointelegraph Markets Pro and TradingView show that an early morning sell-off broke BTC support at $ 50,000 and was followed by a second wave in the early afternoon that pushed the major cryptocurrency down to a daily low of $ 47,318 before it hit the Cops managed to stop the outbreak. .

BTC / USDT 4-hour chart. Source: TradingView

Here’s a look at what various market analysts are saying about the reasons for this latest correction and what to look for as we move into late 2021.

A bearish divergence in the RSI before reversing

Analysts warn of a possible bearish candle that could push BTC price as high as $ 44,000
Analysts warn of a possible bearish candle that could push BTC price as high as $ 44,000

The options trader and pseudonymous Twitter user John Wick informed about the technical reasons for the year-end correction of the BTC rate, the released The graphic below highlights a bearish “fake” when the price of Bitcoin began to reverse.

BTC / USDT 4-hour chart. Source: TradingView

Wick stated:

We are building a double high clearly defined by the bearish divergence of the RSI. Notice how price action was trending up while the RSI was trending down. We also had a bearish fake from Alpha Thrust Squeeze.

Possible decrease to $ 44,000

Bitcoin’s ongoing struggles in the 21-week exponential moving average (EMA) have been highlighted in the chart below by market analyst and pseudonymous Twitter user Rekt Capital. The weekly chart shows the difficulty that BTC had in overcoming the technical indicator.

1 week chart for the BTC / USD pair. Source: Twitter

Bitcoin’s price action resembles a scenario that occurred in May, “where Bitcoin is experiencing several weeks of consolidation between the two bull market EMAs,” according to Rekt Capital, and the price could soon return to the $ 44,000 level. He continued:

“Historically, BTC lowered the orange area during this new red test, so there is room for another orange review.”

Waiting for a breakout above $ 52,000

The pseudonymous Twitter user and analyst “Don Alt” made suggestions as to what traders should watch out for in the coming days and weeks, who released the following graph shows that Bitcoin is in a “pretty clean downtrend for the time being”.

1-hour chart of the BTC / USD pair. Source: Twitter

Don Alt pointed out that there isn’t much to see if BTC continues to trade in a range at these current levels. They are now waiting for a significant break above the first red resistance zone on the previous chart, which is near $ 52,000. Don Alt explained in more detail:

I’m starting to hopefully get over $ 52,000, over $ 60,000, the raging bull market is back. Until one of these things happens, I’ll be looking for deep highlights and focusing on other, more exciting things. “

The total capitalization of the cryptocurrency market is currently $ 2.234 trillion and Bitcoin’s dominance index is 40.3%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you must do your own research when making a decision.

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