Bitcoin price: profit-taking causes bitcoin to correct to USD 55,000
After reaching a new all-time high, there is currently slight profit-taking in the cryptocurrency Bitcoin. The leading currency’s dominance is also correcting from its weekly highs.
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The price of the cryptocurrency Bitcoin rose to a new all-time high of USD 61,700 in the past trading week. It thus touched a repeatedly mentioned price target from the hourly chart before a consolidation movement back towards USD 55,000 set in. Currently, the BTC price is moving in a Crypto Revolt trading range, which can also be described as no-man’s land. Bitcoin is thus trading almost unchanged compared to the price seven days ago. However, as long as the BTC price trades above the EMA20 (red), currently at USD 53,700, the bulls do not have to worry seriously.
Bullish scenario (Bitcoin price)
The price of the cryptocurrency came back by around 14 percent at the peak in the last trading days, but initially averted a break of the EMA20 (red). Thus, the first important support level at USD 54,077 has been defended so far. As long as the bitcoin price can stabilise above USD 51,695 at the end of the day, the buy side will continue to be in control. If the bulls manage to move the price back above USD 55,944 and especially USD 57,176, the lower edge of the red resistance zone will first come into view. If the 161 Fibonacci extension at USD 58,300 is also dynamically overcome, a renewed attack on the all-time high is likely. North of the all-time high, the upper Bollinger band at USD 63,944 comes into view again. If this resistance is broken dynamically to the upside, a rise to the 200 Fibonacci extension at USD 68,450 is conceivable. Here, investors could once again take profits and lead the BTC price back towards the previous all-time high at USD 61,700.
As long as the BTC price then does not slip below USD 58,466 again, the bulls will promptly move the price back towards the psychological USD 70,000. Supported by the interest of new institutional investors, the price should be able to rise to USD 77,678 in the first half of 2021. This resistance level arises from the Bitcoin monthly chart. If bullish investors manage to sustainably overcome this resistance, the price target of USD 84,603 will come into view. This price level is the 261 Fibonacci extension of the overriding price movement. If the central banks of the USA and other important economic regions do not get their money printing under control, the bitcoin price could then march through towards USD 89,982. This is the 461 Fibonacci extension from the hourly chart. Once again, major profit-taking is to be expected here; this Fibonacci extension is often considered an important price target on the crypto market. However, if further stimulus packages are launched in 2021 to support the economy and the monetary expansion continues, a rise to USD 110739 cannot be ruled out. This is the 361 Fibonacci extension of the overriding price movement.