Bitcoin managed to produce a weekly close above 100,000 dollars for the first time. However, we have now fallen below the $100,000 level again, and it promises to be a volatile week for several reasons:
- Analysts warn that weekly closes or record highs often don’t last long, and we need to fill a $10,000 drop from last week.
- On Wednesday we will get the US consumer price index and next week the US central bank will make a new interest rate decision.
- China announces that it will implement a much looser monetary policy in 2025 to support the economy.
- Microsoft shareholders will vote on whether the tech giant will adopt Bitcoin.
- Bitcoin’s charts indicate erratic price action, and analysts say the $110,000 level is the next stop.
Weak period for Bitcoin
According to the pseudonymous analyst Skew, it is clear that Bitcoin is in a weak period for a while.
“We are here looking for strength and demand to lift prices and confirm the $98,000 price as support. Persistent weakness means we have to sit on our hands for a while,” Skew said.
And that weakness came, because last night Bitcoin fell below $95,000. There was again talk of a so-called flash crashand it still seems very difficult for Bitcoin to stay above $100,000.
The market is out of balance
CrypNuevo has a different theory. He states that we should be careful with Bitcoin, because we still have to fill Bitcoin’s price drop to $92,000 on December 5.
On Sinterklaas’ birthday, Bitcoin shot up to $104,000, but the digital currency then fell back to $92,000. That day ended with a real liquidation wave, and according to CrypNuevo there is a 96% chance that we will fill that “imbalance” in the market.
He seems to have been right, as Bitcoin has almost reached the yellow line on his chart. Bitcoin is now recovering and the price is at $97,500.
That is not yet enough for renewed optimism, but it also shows that the corrections are limited for the digital currency at this point in the cycle. That is a very strong signal, because in previous bull markets we saw much deeper corrections.
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Source: https://newsbit.nl/deze-week-kan-heel-volatiel-worden-voor-bitcoin/
