Although the odds are leaning slightly toward sellers, the signs seem to indicate there might be a Christmas Bitcoin rally. The price might rebound slightly on volatility, but it should first break through the support level at USD 16,000.
The bulls are struggling to defend the support zone of the indecisive Bitcoin (BTC) price to avoid further losses. That suggests that the pioneering cryptocurrency might have a bullish rally next Christmas.
The Christmas season has generally proven positive for the price of Bitcoin throughout its history. Although there is now a very uncertain scenario, some signs indicate that a relief rally might be in the offing soon.
A survey conducted by Key Alerts reveals that 61.3% of the respondents believe there will not be a bullish rally in December. However, the bears will continue to control the market if there are no clear confirmations.
Bitcoin is trading at around USD 16,022 and has accumulated a 4.2% loss over the last 24 hours. While its daily trading volume is above USD 22.90 billion, its market capitalization is about USD 307.83 billion, according to CoinGecko.
The Weekly Analysis Indicates the Possibility of a December Rally
After the sudden drop in the crypto market, the weekly chart shows a bullish divergence. That situation indicates that the sellers are not strong enough to push the price further down.
The price of Bitcoin is in a relevant support zone close to USD 16,000. Furthermore, the divergence and lack of a sigh of relief would make a rally possible in the short term.
According to the weekly chart, the first resistance of the Bitcoin price is USD 21,000. The first support it should exceed to break out of the bearish trend is USD 16,188, followed by USD 14,000.
With no positive confirmations yet, the odds are leaning slightly toward the sellers. However, no one can rule out a Christmas Bitcoin rally in December, given the relevant signs observed.
The Crucial Levels of the Bitcoin Price in the Short Term
The value of Bitcoin reached the limit of a symmetrical triangle in which it remained locked for ten days. Since the space inside the pattern is becoming increasingly small, there may be a slight rebound in volatility in the short term.
However, the price must first break through the resistance at USD 17,600 or the support at USD 16,000 to expect a significant directional move. Since the trend remains down, so the odds are leaning that way.
If the price of Bitcoin resumes the bullish trend, the following levels would be USD 14,800 and USD 14,000. If a relevant bullish break occurs, confirming a relief rally, the target would be USD 21,000.
Investors should research Bitcoin before buying it to learn about its all-time high, behavior, and possible future price. That allows them to make better investment decisions and avoid losing money due to volatility.
Amid the collapse of the FTX cryptocurrency exchange, the price of Bitcoin has suffered a considerable drop. However, it is a matter of time before seeing where the pioneering cryptocurrency heads next.
By Alexander Salazar
