A couple of weeks ago, we predicted that the holiday season might have a part to play in getting Bitcoin up and running going into the new year. Well, it seems like Santa has taken a vacation this year as it has been relatively quiet in the market.
A few days ago, the Bitcoin price rallied above the $7,600 mark only to drop back down below support at $7,300 and be stagnant near $7,200. Yesterday was no different, as BTC swung high to $7,431 before falling and forming a low at $7,150.
At the time of writing, Bitcoin is trading sideways at the $7,170 mark, as it has been for the last couple of days.
Yesterday, the bulls may be forgiven for being optimistic as BTC broke through the 100 hourly SMA to rally above key resistance at $7,400, but their joy was shortlived as it dropped below the SMA100 and we can see a bearish trend line forming with resistance near $7,350.
In the last 2 days, strong support at $7,120 has been keeping the Bitcoin price afloat. A break below this level would see BTC testing $7,000 and even $6,800. Meanwhile, a hopeful run on the upside would see Bitcoin push past $7,300, the SMA100 and the bearish trend line, although this possibility seems unlikely at the moment.
Experts are saying that in the absence of Santa’s rally this December, we could see Bitcoin bottoming out in the first couple months of 2020. Once that happens, we could see BTC bounce back before the halving occurs in mid-2020.
Very simple, 2020 is going to be a great year for cryptocurrencies and Bitcoin.
If market capitalization remains above $145-150 billion, I won't be surprised we'll see a rally towards $500-600 billion.
January – February 2020 bottom formation. pic.twitter.com/hWIMzqsuBp
— Crypto Michaël (@CryptoMichNL) December 25, 2019
All in all, everyone seems to think that Bitcoin will have a great 2020. Only time will tell.