Bitcoin Price Analysis

Bitcoin bounced off the 50-day Simple Moving Average (SMA) of $92,901 on December 20, but the recovery faces selling at the 20-day Exponential Moving Average (EMA) of $98,758.

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Daily candlestick chart of the BTC/USDT pair. Source: Cointelegraph/TradingView

The BTC/USDT pair could consolidate between the moving averages as bulls and bears attempt to gain an advantage. If the price breaks above the 20-day EMA, this would suggest that the correction may have ended. The pair could then test the all-time high again at $108,353. A breakout and close above this resistance could initiate the next leg of the bullish trend towards $113,331 and subsequently to $125,000.

Conversely, a breakout and close below the 50-day SMA could initiate a deeper correction towards $85,000. This is an important level that bulls must defend because a break below could open the doors for a drop to $73,777.

4-hour candlestick chart of the BTC/USDT pair.

Both moving averages are tilted down on the 4-hour chart, and the RSI is in negative territory, indicating an advantage for sellers. A breakout and close below the $90,000 support could signal the start of a deeper correction towards $85,000.

The first sign of strength will be a breakout and close above $100,000. The pair could rise to $105,000 and subsequently to $108,353. Sellers are expected to defend this level strongly; if they fail in their effort, the pair could resume its bullish trend.