FX.co ★ Trading signals for BITCOIN (BTC) on December 20 - 21, 2021: buy above $43,750 (-1/8)

Since late September, Bitcoin has started an upward rally from the low of about $41,000 to an all-time high of $67,500 on November 8. Now it is close to losing all its gains and could fall to the critical support of $37,500 in the next few weeks.

However, the $43,750 zone is acting as strong support for Bitcoin. A consolidation above this zone is expected in the next few hours. So, the price can gain momentum to bounce back to the 200 EMA and the psychological level of $50,000.

If Bitcoin comes back, touches the line of 8/8 Murray and the 200 EMA and fails to break through it, it will be an opportunity to sell again with the targets at $43,750 and $37,500.

As long as BTC continues to trade below the psychological level of $50,000, the downward pressure will continue to increase and market sentiment will continue to be negative.

On the other hand, the psychological level of $40,000 may turn out to be the key support that investors expect BTC to test so that they can buy again with the target at $60,000 in the medium term.

According to our forecast, BTC is going to consolidate above $43,750 in the next few hours. As long as Bitcoin is trading above this zone, we will have an opportunity to buy with the target at $49,750 (200 EMA).

On November 10, the eagle indicator touched the overbought zone around 90 points. From this level, it continues to give a bearish signal and is approaching the oversold zone. Bitcoin is likely to have a bit of a bearish run to at least $40,000 and could then make a technical bounce in the next few days.

Support and Resistance Levels for December 20 - 21, 2021

Resistance (3) 49,592

Resistance (2) 48,897

Resistance (1) 47,062

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Support (1) 45,227

Support (2) 44,087

Support (3) 42,478

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A trading tip for BTC on December 20 - 21, 2021

Buy above 43,750 (-1/8) with take profit at 50,000 (200 EMA), stop loss below 42,478.