Since Wednesday Bitcoin could break all the resistances and hits its all-time high at the price of $23,700. Meanwhile, more institutional investors such as Jefferies are joining the crypto market by buying Bitcoin. This firm sold out 5% of its gold investment and bought Bitcoin instead. The reason we talk about institutional investors all the time is that they have significant impact on Bitcoin price. Now the question here is that where will Bitcoin go? In this article we are going to have a weekly analysis (13-19 Dec). Let’s take a look at charts.
If you follow our weekly analysis from the beginning, you will notice that we focused on support, resistance, and trend lines. The main reason is that Bitcoin always react perfectly to these lines. Last week, we drew the short-term downtrend channel for Bitcoin. In addition, we mentioned that if the price could break the top line of the channel, the price will surge. Meanwhile, we talked about the mid-term ascending line, which perfectly matches on Bitcoin candles. It’s notable that these lines drew on the logarithmic chart. However, the arithmetic chart provides different data.
Now, Bitcoin entered to a new era. As a result, the previous resistance levels would not be useful anymore. The Bitcoin price is still close to its all-time high, which shows that traders and investors are not intended to make profit from the current price jump. Consequently, the price may surge to $24,200 or even higher to $25,000. However, if the price declines, the $20,000 support line plays a significant role. The reason is that, if the price falls below $20,000, it may dramatically decline to lower prices.
Weekly analysis (13-19 Dec); Ethereum
The Bitcoin price jump resulted in altcoins price surge. However, altcoins price did not grow the same as flagship cryptocurrency. The ETH/BTC chart shows the relation perfectly. Since early 2020, Ethereum began to compensate its backwardness from Bitcoin and currently it is correcting at 0.028 BTC. It shows that Ethereum price may return from the current level and begin to move toward the next targets, which are $760 and then $940.