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Bitcoin Price Prediction: BTC/USD Pauses as It Fluctuates Between $23,500 and $23,800

Bitcoin (BTC) Price Prediction – December 19, 2020
On December 16, the overhead resistance at $20,000 was broken. Analysts believe that the next move will be to the $25,000 high. This opinion was based on the fact that the price movement exceeded the target price of $22,540. The bulls broke the target price and rallied to the $23,900 price level.

Resistance Levels: $23,000, $24,000, $25,000
Support Levels: $13,000, $12,000, $11,000

BTC/USD – Daily Chart

Today, BTC/USD price has continued on the upside as it reaches the high of $23,900. However, some factors will hinder BTC from reaching the targeted price of $25,000 high. Firstly, Bitcoin is trading above the 80% range of the daily stochastic. It indicates that the BTC price is in the overbought region of the market. By implication, sellers will emerge to push prices downward. However, in a strong trend, the overbought condition may not hold. One of the factors that will affect price movement is the Relative Strength index which indicates that the coin is at level 79. This implies that BTC has no room to rally on the upside. The price movement is likely to pause at the moment.

Reasons Why Traders Expect Continuation After Bitcoin Price Spike to $24k
On December 19, BTC price reaches its peak at $24,200 but pulled back. The coin is fluctuating between $23,500 and $23,800. According to reports, the recent rally above $23,500 resulted in the liquidation of $138 million worth of short contracts. According to reports, on Bitfinex, there are large sell orders between $23,600 and $23,800 resistance levels before the rally occurred. As the Bitcoin price began to increase, it squeezed out shorts and sellers in the $23,600 to $23,800 resistance range. For instance, a short squeeze happens when a seller is forced to the market to buy their position as price of Bitcoin goes up.

BTC/USD – Daily Chart

Bitcoin is fluctuating between $23,500 and $23,800. Meanwhile, the BTC price has risen and surpassed level 1.618 Fibonacci retracement level of $22,732.80. Bitcoin is targeting to reach the $25,000 price level in a couple of days. Meanwhile, the current momentum is yet to be sustained above $24,000.

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      Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.