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Just a day after my last review on the first cryptocurrency, bitcoin managed to break through the triangle down and show a drop of more than $1000, but the movement potential is still not exhausted.
As I wrote earlier, the triangle’s potential is about $1,600, which corresponds to a drop to around $17,300, where there is also a strong support level.
A stronger decline will be a very worrying sign since the price will definitely come out of the $18,000-$19,800 consolidation, and it will not be possible to write off everything for a false breakout. This scenario will lead to a downtrend with the next target of $16,500.
The triangle formed by bitcoin’s price, broken down on December 8 with a designated fall target, based on its height. BTC/USDT hourly chart from TradingView.
Just today, the media reported that the volume of bitcoin sales by miners reached a maximum in three years — higher figures were recorded only at the beginning of 2018 during the beginning of a large-scale market decline. This confirms my idea from the previous review that it will be very difficult to stay above $20,000 in an environment where “every holder is in the black.”
However, taking into account such massive sales, the leading cryptocurrency is still holding up well — it is clear that buyers do not give sharp spills and hold important levels, so 2020 can still give the bulls new historical highs.
A more local chart shows us a flat with a range of $18,000 – $18,500, the price can still trade there for a while, which gives us good opportunities to work from its borders with small restrictions on risks. The priority is to sell from the upper limit since false breakouts of the resistance level in this situation are much smaller.
Local sideways movement with marked support and resistance zones. Fifteen-minute BTC/USD chart from TradingView.
Thus, bitcoin broke the uncertainty with a strong impulse movement and let the market know that it is set to move down in the medium term.
This movement’s goals are almost reached, but a break of $17,300 may form a longer downtrend. Local ideas are primarily related to working within the current flat with the boundaries of $18,000 and $18,500.