New Bitcoin ATH Sparks Optimism in Crypto Community – Price Analysis, 21 Dec 2020

technical analysis cover 21 December Bitvalex moon

Last week, on December 16th, Bitcoin recorded another long-awaited, historical event – the price of the cryptocurrency surpassed the psychological level of $20,000 per one digital coin.

Moreover, in the subsequent days, BTC managed to reach even the level of $24,000 per one digital coin, therefore, significantly exceeding the old all-time high (ATH) from December 2017. Against this backdrop, the optimism in the crypto community has started intensifying. For example, Scott Minerd, Chief Investment Officer at Guggenheim Partners, announced on Bloomberg that their investment fund continues to buy Bitcoin because they expect the price of the cryptocurrency to hit $400,000:



Source: Twitter

Minerd explained the $400,000 price level by comparing Bitcoin with gold. He highlighted that the cryptocurrency has all the attributes gold has, and this is why the BTC market cap should reach this of gold.

Although the positive sentiment towards Bitcoin is growing, some people in the crypto community believe that buying altcoins would also pay off. In a podcast for Real Vision Finance, Dan Morehead, CEO of cryptocurrency hedge fund Pantera Capital, once again confirmed the fund is bullish on Bitcoin. However, according to him, they expect Ethereum and XRP to outperform Bitcoin when it comes to percentage growth. That is why Morehead recommends buying some altcoins in addition to Bitcoin to get the most out of the upcoming bull market.

After the exceptionally positive past week for Bitcoin, the crypto market starts the current one with slight consolidation. At the time of writing, according to, one Bitcoin costs €19,524.36 (+1.86%), one Ethereum – €526.95 (-1.53%), and one LINK – €10.75 (-2.19%):


Source: (Daily crypto market performance)

Now let us have a look at the charts of the leading cryptocurrencies against the euro.


In the daily chart (1D), BTC/EUR has significantly surpassed the local high from December 2017:


If we apply the Fibonacci Extension levels to the last wave, we can set the 1.236 Fibo Extension (around €20,378) as a first target (T1), and the 1.382 Fibo Extension (roughly €22,457) as a second target (T2). The level of the local high from December 2017 (approx. €17,000) will serve as a support level.

In our estimation, in the worst-case scenario, BTC/EUR may drop to the support level this week and, then, it may bounce off. However, it is most likely BTC/EUR attempts to reach the first target (T1) – the 1.236 Fibo Extension.


In the 4-hour chart (4H), last week ETH/EUR was able to exit the Ascending Triangle and resume the uptrend:


According to the Technical Analysis theory, the upper line of the triangle will now serve as support for the price of Ethereum. That is why it is highly probable that after a period of consolidation, at the upper line of the triangle, ETH/EUR starts to increase again.

However, if a deeper price pullback occurs before the price starts to increase, the 30-day Moving Average (30 MA) on the daily chart could serve as additional support:


It is worth mentioning that at the moment, the 30 MA is at the level of €486. So, this is the current most significant support for the price of Ethereum.


In the 4-hour chart (4H), LINK/EUR was able to break through the resistance and, therefore, it has been able to resume the uptrend:


Because of the uptrend renewal within the trajectory of the Ascending channel, many traders will start opening long speculative positions if LINK/EUR bounces off the lower line of the channel. Theoretically, they will place their stop-losses below the lower line, or slightly below €10 per one digital coin. They will set their take-profits close to the upper line (close to €14 per one LINK). However, we think that, in the current situation, it would be better to use a trailing stop-loss instead of relying on the take-profit.

Stay updated on everything Bitcoin-related with Bitvalex. Bitvalex 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.

Trade crypto with Bitvalex

Buy and sell BTC, ETH, BCH and LTC with EUR and USD аt great rates. EU-licensed Bitvalex supports SEPA, SWIFT, debit and credit cards, as well as AdvCash transfers. Sign up now and be one of the first to get a prepaid Bitvalex Mastercard!

Sign up

Leave a Comment