BTCUSD – Weekly outlook for Bitcoin Price – 23rd December 2020

BTCUSD Forecast for BTC

Introduction

Fear, Uncertainty, and doubt plague the crypto sphere this weekend, as Bitcoin BTC, the number one crypto by market cap, continues to set new highs. 

Bitcoin has so far surged way beyond the $20K all-time high on top online trading brokers and set a new milestone at about $24.29K on Sunday.

BTCUSD Technical Analysis

Monthly Chart

Monthly Chart of BTCUSD (Tradingview) - ·23rd December 2020

After entering the RSI (4) overbought area in October and closing with a long bullish candlestick in November, the Bitcoin price was set to break through the 2017 all-time high.

The BTCUSD exchange rate trades above the $23K round-number area and surges beyond the $24K mark, forming a new all-time high. 

 

Weekly Chart

Weekly Chart of BTCUSD (Tradingview) - ·23rd December 2020

The weekly chart shows the Bitcoin price break out of the MA10 and MA20 range on  05 October ’20, confirming the hidden bullish divergence and set surged higher by about 114%.

However, the week started with a sharp price correction into the $22K price zone after hitting support again. A view from the daily chart will reveal more on that.

BTCUSD Daily Chart

Daily Chart of BTCUSD (Tradingview) - ·23rd December 2020

The daily-TF started with price exiting the RSI oversold area. 

Buying sentiment continued with the bulls stacking up their position whenever the relative strength index entered and exited the oversold area on 24 September ’20, 28 November ’20, and 12 December ’20.

Other significant levels were formed by a sequence of break of bearish-Acc resistance areas 05 October ’20, 19 October ’20, 03 November ’20, 11 November ’20, 16 November ’20, 28 November ’20, and 12 December ’20.

Bullish Scenario:

A bullish presence on the long term and midterm is observed on the monthly and weekly charts, which we believe will be reinforced if the RSI exits the weekly chart overbought area and continues above the area, a maneuver similar to the bullish rally in 2017.

Bearish Scenario:

The bullish price close above the $23287.00 resistance on 19 December ’20 lead to the current price correction we experience and may persist further if the Bitcoin price does not close above the $24123.00 resistance.

Bitcoin BTC News Events 

First, with Tesla TSLA CEO, Elon Musk, asking about the likelihood of switching large transactions of TSLA balance sheets to Bitcoin BTC, in a Twitter exchange that involved Elon and Michael Saylor, a Bitcoin evangelist and CEO of MicrosStrategy Inc.

In the Twitter conversation, Saylor proposed that the Tesla CEO would be doing shareholders a massive favor by converting the TSLA balance sheets to BTC.

A move he believes should draw other companies in the S&P 500 and grow to a trillion USD.

Saylor offered Musk a peek into his playbook and emphasized his purchase of over $1.3 billion in Bitcoin BTC some months ago.

Musk’s second attention-drawing tweet was his comparison of Bitcoin to the lousy state of fiat money, and he rounded up with Dogecoin being supreme. A tweet that shot Dogecoin up by about 17%.

In the news, CZ (Changpeng Zhao), Binance CEO, speaks on a highly probable case of Elon Musk and Tesla buying crypto.

Although Tesla is among a few Fortune 500 American companies that have not shown a clear interest in crypto, Paypal, a company musk cofounded at some point, already allows customers to buy cryptocurrency using its platform.

Willy Woo, a famous on-chain analyst projects $55K as the next BTC milestone and mentions that a $100K BTC is absurdly low.

The number of BTC addresses holding a minimum of a million USD in BTC surges by roughly 150% this week alone.

Conclusion and Projection

With uncertainties in the form of a global pandemic on the rise and Brexit deal or no deal looming, investors and traders seek shelter in Bitcoin and assets that are considered non-correlated to the traditional economies.

I'm based in London ( England, UK )
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.

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