Analyses

Bitcoin - Technical Analysis - Mon, Dec 30, 2019

On Monday, December 23,  Jon Erlichman, host of the famous show "The Open" on BNN Bloomberg and a fill-in anchor for Bloomberg's global program "Bloomberg Markets", shared a list of some of the best-performing stocks of the past decade on his Twitter account:

 a679f36b1f35d2ee2f7fd63eb71c1f05.jpg

Source: Twitter

According to the list, Netflix was by far the best performer of the decade, returning 4,177% to its investors. Amazon's shares returned 1,787% to its investors; Mastercard's shares came in third with 1,126%.

By providing this list, Erlichman wanted to underline that stocks had been one of the best investments in the last decade and that they will remain among the best in the next 10 years.

Erlichman's tweet didn't go unnoticed by the crypto community. Tons of crypto enthusiasts reacted immediately by comparing the stock returns with the meteoric Bitcoin price increase during the last decade. For instance, @_blockandchain_ responded to Jon Erlichman's tweet by highlighting Bitcoin's almost 9,000,000% price increase:

604ab7b48a18278cb7c792aca556e8b9.jpg

Source: Twitter

Thus, the crypto community wanted to remind investors in traditional financial assets that cryptocurrencies outperformed stocks as an asset class in the past decade and will probably outshine them in the next one too.

Crypto enthusiasts expect not only a promising new upcoming decade but also a prosperous New Beginning for Bitcoin in 2020. For example, Michael Novogratz, Galaxy Digital CEO and chairman, predicts Bitcoin to finish over $12,000 in 2020:

baff33cefa9e442da9d770297e0aa572.jpg

Source: Twitter

While the crypto community foresees a bright future for the cryptomarket, the price of Bitcoin remains below the critical psychological level of $10,000 per one digital coin. According to Coin360.com, at the moment BTC is trading at the level of $7,345.46:

318a749ae4f2ceb2186c8d2bede6b879.jpg

Daily crypto market performance. Source: Coin360.com

Bitcoin Technical Analysis

On the daily chart (D1), the price of Bitcoin remains within the «descending channel» and is struggling to stay higher than the 38.2 Fibonacci retracement level ($7,182.10):

54c9b9171f6e772b05232ed87736f001.jpg

On the weekly chart (W), after the «Hammer» candlestick, a «Spinning top» candlestick formed last week:

86b7ff9649d1792b0cadf1d8121f966f.jpg

Although the «Hammer» is a bullish reversal pattern, the «Spinning top» candlestick shows indecision between the bulls and the bears. Thus, it brings back the uncertainty to the market and because of it, there is no clear signal in which direction the price will continue to move.

On the 3-hour chart (3H), BTC continues to fluctuate near the lower line of the potential «ascending channel»:

7041c93f322d87656c458e6ad949a2d4.jpg

The situation has remained unchanged over the last week: if BTC continues to move within the potential uptrend, then the price of Bitcoin may reach the 50.0 Fibonacci retracement level ($8,366.50) in the next few days; otherwise, the price may drop to the 38.2 Fibonacci retracement level ($7,182.10).

In conclusion, the slight bearish sentiment on the daily chart continues. On the weekly chart, the uncertainty persists: the sentiment is neither bullish nor bearish. In the 3-hour time-frame, there is a small probability that the bulls will continue to struggle to push the price higher.

Stay updated on everything Bitcoin-related with BitvalexBitvalex is a licensed digital wallet and cryptocurrency exchange; learn more about us and blockchain technology and sign up to use our services.

The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.


Leave a Comment


Comments