Bitcoin Price Halts – Did the Adjustment KILL the Strong Momentum?

Bitcoin managed to spike this year and broke continuous all-time highs for 2 weeks. Once the long-awaited 20k event was attained, the price ballooned further as there were no real resistances in this new area. On Sunday the 27th of December 2020, the price stopped increasing and retraced. Will this kill the strong momentum?

Bitcoin Price Prediction – A Healthy Retracement?

As we always mentioned in our previous articles, retracement in prices are usually healthy habits that occur in order to adjust prices, letting traders cash out their profits, thus closing their positions by selling, and in turn, the price would decrease from an increased selling point.

Yesterday, Bitcoin retraced from a high of USD 28,380 all the way to USD 25,780 losing USD 2,600 in 16 hours, or a decrease of 9%.

BTC/USD 1-Hour chart, showing a retracement from the all-time high
FIG.1 BTC/USD 1-Hour chart, showing a retracement from the all-time high –

The retracement comes as no surprise, as plotting the Fibonacci Retracement shows a potential retracement at a 38.2% level to exactly that retracement area. If we look also at the 50% level, we can expect a further price adjustment down to the USD 25,572 area if prices fail to pick up in the short-term.

BTC/USD 1-Hour chart, showing a further potential retracement
FIG.2 BTC/USD 1-Hour chart, showing a further potential retracement –

The whole cryptocurrency market

In the past 24 hours, despite Bitcoin adjusting lower, most altcoins were heavily up, with Ether and ChainLink in the lead:

1- Bitcoin (BTC) : – 3.35 %

2- Ether (ETH) : + 12.43 %

3- Tether (USDT) : 0 %

4- Ripple (XRP) : – 3.55 %

5- Litecoin (LTC): – 3.55 %

6- Bitcoin Cash (BCH) : + 4.90 %

7- Cardano (ADA) : + 2.66 %

8- Binance Coin (BNB): + 3.93 % 

9- Polkadot (DOT) : + 11.25%

10- Chainlink (LINK) : + 12.59 % 

Stay Ahead, Stay Updated and MERRY CHRISTMAS!

Rudy Fares

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