Prices reached a peak at around $69000.00, a new All-Time-High but failed to stretch all the way to $100000.00, the much-speculated ATH. Bears crept in and triggered a massive selloff which result in a price decline equivalent to 28%. A decline of such magnitude would have been defined as a market crash if it had transpired in the equities market, but crypto-traders are used to such phenomenon.
A benchmark double top has been created, with the baseline support level at the $30000.00 handle. Prices have in the meantime found significant support at the ascending parabolic support line. The previous bull runs to the two consecutive ATHs were initiated from this support line. A reoccurrence of such a phenomenon will see the Bitcoin going beyond the $70000.00 region. This expectation should be taken down with a little bit of consciousness as there is limited room for the price to create ample support before take-off, unless the market is to witness a V-shaped price recovery.
Prices breached the (Red) 10 Moving Average, and now has found significant support at the 30 MA (White). This has created a confluence of support between the parabolic support and the dynamic 30 MA, a good ground for a price consolidation. If the bulls manage to capitalise on this opportunity, another price uptick can be witnessed before 2021 comes to a conclusion. Bears cannot be underestimated at this particular point, as the immediate bearish target below the current level will be the $30000.00 handle. That would a whopping 50% price decline and it cannot be ruled off taking into consideration the double top formation which triggered the current price selloff.
Prices are already tethering below the 30 MA which might influence a quick selloff towards the $42 000 region which encompasses the previous consolidation region. The consolidation region extended from $51 000.00 to $42 000.00 and a similar range cannot be ruled off based on the volatility of the Bitcoin market.
