The parallel channels broke out (as mentioned in the previous Price Analysis articles) and the outcome was positive for the market. The price climbed to $50,000, creating the base for a solid comeback towards higher price levels, that could be achieved in multiple layers.
After surpassing the parallel channels, a minor support zone could stand as a first response above $50,000. This support zone can enable the price to reach the previous zone between the higher parallel channels, between $54,000 and $58,000. A force needed to climb the steps between $50,000 and $54,000 will come as a transitory phase that will involve more volatility than before, as investors will try to balance their positions for the next trend.
This reaction can be considered as a decisive move that derived from the steep correction, experienced from the market, 20 days ago, when the market touched nearly $42,000 in a day-long crash. The market reacted quickly and the price retained its bullish outlook for the mid-term perspective. The two scenarios that the market is looking ahead are:
From a technical perspective, the market will continue to push to higher levels but if the accompanied volume stays low, the trend won’t last for long.
In addition to the previous findings, we should take into consideration that the trading volumes have been sustained at high levels for the recent period, indicating that the investors have remained active during the last period and have an impact on price formation.
In parallel, the moving averages (50-day and 200-day) are moving closer to each other, bringing up the potential for a new bullish signal on the way. Confirming a bullish signal could bring more optimism in the market and establish a better position for the next moves in it.
In the short-term view, we can observe that the breakout from the parallel channels has overcome the previous support zone (the dip from the previous channel) and head towards the next point in the chart. The expectations are positive for the next period but the momentum will play a crucial role in the short-term development.
It is important to note that the Christmas rally is possible to happen during the last days of 2021, bringing another uptrend in the market and pushing the valuations and the prices to higher levels that expected. The last days of this year will be very interesting and we will be here to cover the developments and what’s coming next for the market.
Another parameter that we should take into account for our analysis is the minor consolidation periods. The market is increasing and decreasing from support and resistance zones, where the price remains on the same levels for some time, before breaking out in the next zone, bullish or bearish. This means that the next zone could become on the traces of the previous channel (around $54,000 to $58,000) until there is a clear trend for that.
In the day-trading overview, there was a clear opportunity for a bullish uptrend that we highlighted in our previous articles, which was confirmed and made the price to climb at $51,000. The moving averages in this case are not 50-day and 200-day but 8-day and 33-day, which is more suitable for the 4-hour span.
As the breakout happened in the previous period, we should focus our chances on tackling the next big move towards the higher price channel that could be achieved in the next days or weeks. From this point of view, we cannot expect a major correction or increasing volatility that will make day-traders more than happy to exploit.
Exploring a new trend in the short-term market could be the most useful part as more and more signals will emerge to show us what will be the potential next moves in the market. We can also observe that the spike in the trading volume created a new trend to reach the $52,000 level.
MACD index grows rapidly over the last 4 days, creating a momentum trend that can bring more investors that will try to ride the short-term curve. The short-term curve can lead the price up to $54,000 and the momentum can grow the trend like that.
RSI index grew to value = 50, indicating that the short-term exposure in the Bitcoin will remain at stable levels. This stability will give the chance in the investors’ community to formulate the next moves and how they will place their positions for the next round. As the market continues to try to find a recovery process, more and more investors will find a difficult time to predict the next move in the charts.
Bitcoin has made a decisive towards the recovery trend, as it breaks the parallel channels in the upper position and climbed above the $50,000 level. As the price has moved above this levels, more hope is growing in the market as the next resistance level lays around $52,000 – $54,000, where a previous parallel channel was established.
We should wait and observe if the market will find a way to climb until this point and how it will react then. The weekend ahead us will set the tone for the Christmas spirit in the crypto markets and if we will have “green” or “red” Christmas.
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