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- The Bitcoin price has fallen below the important support level of $18,500.
- Experts forecast that Bitcoin could fill the resulting CME gap at $17,000.
After Bitcoin has fluctuated in the price range of $18,500 and $19,500 over the last few days, the price broke through the important support level of $18,500 a few hours ago and stands at $18,225 at the time of writing. This means that Bitcoin has lost 5.31% within the last 24 hours. The market capitalization has fallen to $338 billion.
Bitcoin has so far been able to hold above the 20MA (moving average) on the 4-hour chart despite strong volatility, but fell below $18,600 a few hours ago. This could signal a short-term correction as no new buyers have yet entered the market and taken advantage of the favorable entry point. Bitcoin analyst and trader “Il Capo Of Crypto” states on Twitter that he has not yet bought more, as he believes Bitcoin will fall even further. A daily close below the $18,500 mark is a clear sign that the correction will continue over the next few days.
I'm not buying yet.
— il Capo Of Crypto (@CryptoCapo_) December 9, 2020
Michael Van de Poppe describes that the support levels become weaker the more often they are tested. This was exactly the case in the last ones. Furthermore, due to the high volatility, it is becoming increasingly difficult to predict in which direction Bitcoin will move. In his opinion, traders should keep an eye on the next support level of $18,013. Should this also break, a correction to $17,000 USD may follow:
[…] BTC price level below $20,000 has been accompanied by diminishing volatility and volume, making it increasingly difficult to predict the direction of the next move.
In addition, a “gap” of $17,000 has formed on the Chicago Mercantile Exchange chart at the end of November, which could be filled in the next few days. Such a gap occurs when the closing price on Friday is significantly higher or lower than the opening price of Bitcoin on the Monday after the weekend. Since the CME is closed on weekends, some such gaps have already occurred in the past. The following chart shows the CME gap near the $17,000 mark.
Van de Poppe states that such gaps have been filled to 95% in the past and it is therefore likely that Bitcoin will fall to this level in the coming days. To avoid this supposed correction, Bitcoin must close above the $19,000 mark on the daily chart to put the bulls back in the saddle.
“AMD Trades” even forecasts a possible correction up to the USD 13,000 mark, as Bitcoin was unable to break the previous all-time high. He also points out that Altcoins are likely to “bleed” more than Bitcoin itself, so traders should be vigilant and work with stop-loss orders in the coming days.
https://twitter.com/Amdtrades/status/1336451129589248004
MicroStrategy increases Bitcoin investment by another $400 million
Crypto News Flash reported yesterday that Nasdaq giant MicroStrategy announced that it will invest another $400 million in Bitcoin. Most recently, MicroStrategy again purchased BTC for $50 million at a price of $19,426, accumulating nearly 40,824 BTC in assets. According to CEO Michael Saylor, the company holds Bitcoin as a reserve currency and hedge against further rising inflation.
In addition to MicroStrategy, Square, with a $50 million investment in Bitcoin and PayPal, is one of the other institutional heavyweights in the industry acting as a catalyst for Bitcoin and rising prices.
