Bitcoin price is not looking good as bearish indicators flash all over the Bitcoin price chart. The black swan event we mentioned a few weeks back seems to have been averted – for now. Nevertheless, the Bitcoin chart remains in a perpetual state of uncertainty.
Here is why.
Last week’s Bitcoin analysis presented two scenarios both of which were bearish. Bitcoin was to have a short rally toward the local resistance of $16,962 before heading down (2). Alternatively, Bitcoin could have just skipped the rally part and dumped straightaway (1). Bitcoin was also trending below the 10, 21, and 5–day moving averages, something not good for the future of the asset.
This Week on Bitcoin News
No big news has broken in the crypto sphere this week. Other than the -2.9% expected to dump from Bitcoin on Tuesday and Wednesday, the space has generally been quiet albeit rumours of several crypto mining companies going down have been popping up around crypto twitter (CT).
Microstrategy also picked up another 2500 BTC for $46 million, bringing its total BTC holding to 132,251 BTC valued at ~$4.03 billion. Microstrategy’s average Bitcoin buying price is now ~$30,397 per BTC.
Bitcoin Price Next Week
Several interesting things are taking place on the Bitcoin chart. The price is trending closely below the 10 (red), 21(blue), and 50-EMA (black). This is a tipping point, and historically, a zone of rejection. Our predictions of a $10,000 BTC still stand. Although the timelines could be skewed.
The chart also shows a possible double bottom forming, although it is too early to tell. If it turns out to be a double-bottom pattern, we expect BTC price to test the 50-EMA in a sharp burst in price action before coming back down. If that happens, it could signal the beginning of the long-anticipated crash.
Have a happy new year and Stay safe. The markets are still bearish.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decisions based solely on what you read here.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.