Your favorite crypto news blog

This Analysis Suggests December Will Be a Crucial Month for Bitcoin

Bitcoin 2020/09/23 18:00 by Cole Petersen

Bitcoin’s price action has done little to offer investors with clarity into its near-term outlook. The benchmark digital asset has been trading around $10,500 for the past few days, with each push higher or lower resulting in a move back to this price level.

The lack of directionality seen in the time following its $11,000 rejection seems to indicate that the market is at a turning point, with bulls and bears reaching an impasse as both sides battle for control over its near-term outlook.

One analyst explained in a recent tweet that a Gann-based analysis of Bitcoin’s near-term timeline seems to indicate that mid-December is a pivotal point for the cryptocurrency.

As such, it may not be able to garner any clear directionality until this time, meaning that the coming few months may result in it seeing a prolonged bout of sideways trading.

That being said, the same analyst also notes that he is bull-biased on BTC at the present moment, saying that only a decline beneath $10,000 on its weekly chart would be enough to invalidate this sentiment.

Bitcoin Consolidates as Market Loses Momentum

The cryptocurrency market doesn’t have any strong momentum in either direction at the present moment.

Both bulls and bears have reached an impasse, resulting in Bitcoin – as well as most major altcoins – entering tight consolidation channels.

The two short-term levels to watch closely sit at $10,400 and $10,600. These mark the upper and lower boundaries of the range formed by BTC in the time following its rejection at highs of $11,200.

Where the entire market trends next may depend on which of these levels is broken first.

Trader: This Analysis Indicates Mid-December is a Turning Point for BTC 

One analyst recently stated that a Gann-based time analysis of Bitcoin suggests that mid-December is a pivotal moment for the cryptocurrency. This means that how it trends heading into this time frame could set the tone for 2021.

The analyst does note that he is bullish on BTC so long as it remains above $10,000 on its weekly candle. A close beneath here would be grim.

“BTC Gann based price & time analysis. Current time pivot to be resolved – I remain biased bull until we lose 10K on weekly. Mixed signals but clear invalidation for the bulls and downside targets included in chart which I’ll trade. Next time pivot mid-December,” he explained.


Image Courtesy of Bitcoin Jack. Chart via TradingView.

The coming few weeks and months will likely be imperative for understanding Bitcoin’s macro outlook for 2021 and beyond.

Featured image from Unsplash.
Charts from TradingView.

0 Like(s)

You should also read...

Bitcoin 19/11/19 22:00 by Cole Petersen
Key Indicator Signals That Bitcoin is Bottoming as Bulls Defend Key Support Level
Bitcoin (BTC) has continued slowly grinding lower as bears gain the upper hand over bulls, and sellers have now led the cryptocurrency down to a key support level that must be defended or else it will...
Read More
Bitcoin 31/03/20 01:30 by Cole Petersen
Bitcoin is Forming a Bull Cross After Rallying to $6,500; Analysts Now Targeting $7,700
Following a brief selloff that led Bitcoin down to lows of $5,800 overnight, the crypto has been able to post a strong and sustainable rebound that has since led it to climb towards $6,500, with bulls...
Read More
Bitcoin 27/06/20 10:15 by Nick Chong
Bitcoin Last Flashed This Signal After the Crash to $3,700. It’s Almost Back
Bitcoin has acted weak over the past few days, falling as low as $8,950 as touching $9,800 on Monday. Yet there are technical signals suggesting that a bull trend is soon to appear. One signal that wa...
Read More
Bitcoin 13/07/20 18:00 by Cole Petersen
This Overhead Liquidity Region Could Propel Bitcoin Past $12,000
Bitcoin’s unrelenting consolidation phase may not last for too much longer. Analysts are now explaining that the cryptocurrency is beginning to flash some subtle signs of bullishness as it trades ar...
Read More
Altcoins 14/09/20 18:00 by Cole Petersen
Here’s What Bitcoin’s Strong Weekly Close Says About Its Present Outlook
Bitcoin posted a strong weekly close yesterday afternoon, which is what allowed the cryptocurrency to see an overnight upswing that has led it past multiple crucial levels. While speaking about the di...
Read More