BTC/USD Price Forecast December 26, 2017, Technical Analysis

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Christopher Lewis

Updated Fri, Dec 22, 2017, 10:52 PM

Bitcoin continued to fall apart during the trading session on Friday, as we are trying to find some type of support at the $12,000 level. The question now is whether or not the market can stabilize? Quite frankly, I don’t think it matters for the next couple of sessions. We have a serious lack of liquidity, and obviously retail traders for the most part have been scared away. The question now is whether the institutional traders will come in and trying to pick up value in this market. I believe that retail traders are starting to learn something very important in this market, that the institutional money will push the market back and forth to make profits. If the institutional money comes back into this market place they will have wiped out several retail accounts, and that’s essentially the game here, taking your opponents money. Otherwise, if we continue to go lower I think that the bubble has finally completely popped. I think the $10,000 level will be crucial, and if we break down below there it’s difficult to tell where the bottom would be.

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BTC/USD Video 26.12.17

We have not had a 50% Fibonacci retracement level quite yet, so I think that there is more bearish pressure. If we rally from here, it’s not until we get a day or 2 of stability before I would be comfortable putting money to work. A break above the $14,250 level is the very least I would need to see to think that perhaps a base has been built. Having said that, the $16,000 level above there will be resistance. The market has shed roughly 40% of its value since the highs. The question now becomes whether this is yet another dip and a buying opportunity, or is it the beginning of something bigger? It will be difficult to tell, but I certainly cannot help but notice that most of the volume has been with the negative candles. Ultimately, I think that is the biggest indicator that you need to know.

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