FX.co ★ Technical Analysis of BTC/USD for December 16, 2021

Crypto Industry News:

While Bitcoin continues to swing sideways around $ 48,000, Kraken CEO Jesse Powell does not rule out a potential cryptocurrency meltdown in the short term.

"Crypto winter is now" possible, "Powell said in an interview, noting that Bitcoin and the cryptocurrency ecosystem have historically evolved around cycles based on" something like Bitcoin halving. "

But despite the potentially impending crypto winter, Powell is confident the market will rebound from a bearish market as investors start buying after BTC drops below $ 40,000:

"I think a lot of people see anything under $ 40,000 as an opportunity to buy. I personally was buying when we went down to $ 30,000 a few months ago, and I think a lot of people are just waiting to come back at the lowest prices," he says.

In an interview, Powell mentioned some of his earlier forecasts for Bitcoin, including the BTC forecast for $ 100,000 at the end of 2021. The CEO released this forecast in August, stating: "I think we can see $ 100,000 per coin at the end of this year or on early next year ".

Technical Market Outlook

The BTC/USD pair is off the lows at the level of $45,660 again and is heading towards the level of $50k. The nearest technical resistance is located at the level of $51,913 (Pin Bar high) and $53,333. The momentum is currently hovering just below the level of fifty on the RSI (14) indicator. Despite the recent complex and time consuming corrective decline in form of ABCxABCxABC pattern, the larger time frame trend remains up and only a clear and sustained breakout below the wave C low at $41,678 would change the outlook to bearish again.

Weekly Pivot Points:

WR3 - $56,908

WR2 - $54,309

WR1 - $52,119

Weekly Pivot - $49,669

WS1 - $47,511

WS2 - $44,768

WS3 - $42,652

Trading Outlook:

The ABCxABCxABC complex corrective cycle might be terminated at the level of $41,678 and the market is ready to continue the up trend. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is clearly broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).