Bitcoin (BTC) December Analysis
While Bitcoin (BTC) exhibited sideways price action during the week of November 29 – December 3, it saw a sharp decline with sales that started before the weekend. While there was an average of 30 percent loss in value in general in cryptocurrencies, the largest crypto asset saw a 25 percent loss in this sales wave and fell to $42,000.
Bitcoin Price Tests Major Trendline
Buyers, who used these lows, which were last seen in September in Bitcoin, as a buying opportunity, carried BTC/USDT up to the $48,000 band in the last 48-hour price action. It was noteworthy that the $42,000 level seen as a result of the hard sales coincided with the long-term ascending trend line, which started from the historical low of $5,360 in March 2020.
On the first day of the week, while seller-weighted transactions continued throughout the day in the Bitcoin market, the downtrend tended to lose its strength with the introduction of buyers towards the end of the day.
Bitcoin In Critical Price Range
Bitcoin, which has changed hands between $48,150 - $49,450 since yesterday, has the downtrend been interrupted, or will a recovery begin? It seems that the answer to this question will be determined by the exit direction from this channel movement.
Accordingly, if BTC/USDT can close one day above $49,500, it can see a rapid move towards the $53,700 band, which is seen as the next resistance level. If the $53,000 band is crossed decisively this week, it can compensate for the losses experienced last weekend and it can be seen that Bitcoin can regain the $ 56,000 levels.
On the other hand, a clear day close below $48,150 (day opening and closing below $48,150), which has been working as support since yesterday, may continue to lose in Bitcoin. In the lower region, $46,500 may act as interim support, while on the downside breakout, Bitcoin price decline can extend to the $43,000 band, where the long-term uptrend coincides.
Is Bitcoin Heading Towards A Bear Market?
If the price formation is below the main uptrend originating from March 2020, the comments by market investors that a bear market is entered may increase. Therefore, it will be extremely critical for Bitcoin's December price action to stay above the long-term uptrend (red) seen on the chart.
All in all, Bitcoin price action in the first week of December looks like it will technically be extremely important to Bitcoin price direction for the rest of the month.