NEWSBTC.COM'S BITCOIN PRICE TECHNICAL ANALYSIS FOR 12/20/2017
Major Correction in progress...
NewsBTC.com has just published their technical explanation on what’s going on right now with Bitcoin.
They start with a brief summary, saying “Bitcoin price is showing a classic correction to a former resistance level as it waits for more bullish momentum to sustain the climb.”
Bitcoin’s momentum has slowed down noticeably as its value has approached 20,000 dollars. From an exchange technical point of view, this phenomenon often results in a pullback in value. And the reason why a pullback happens is that it is necessary because that’s how more buyers are pulled in, providing a solid support for continued growth.
Looking around for market factors, we can find some significant events that also provide or may provide explanation for this correction in Bitcoin value:
- Bitcoin futures launch brought about a kind of momentary euphoria which has faded now.
- Also, some market watchers are turning their attention towards other assets like US Equities, that have climbed to new highs as well.
- The tax reform vote is another factor that has turned investors’ interest back towards the US Stock Market.
- And Bitcoin Cash has also got something to do with this. Its value has started a sharp rise and last time that happened it resulted in a temporary but significant drop in Bitcoin value. Those who are afraid it would happen again started selling their Bitcoin.
I think it’s safe to say that the majority of those who have just sold their Bitcoin are not disappointed in the number one crypto currency and are not looking for other investment opportunities outside the crypto market. What is most likely to be happening is that those who have sold their Bitcoin in the last few days, making huge profits by the way, are waiting now, maybe for another day or two, to start buying Bitcoin again in the right moment, before it starts shooting up again towards new highs. Or they will invest in one of the altcoins which have produced unprecedented growth in the past few weeks.