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BTC Analysis: Does Bitcoin have enough steam to reach $30,000?

  • Bitcoin has created a so-called shooting star candle.
  • Technical indicators on a weekly and daily basis are still trending bullish.
  • BTC is following an ascending support line.

The Bitcoin (BTC) price continued its climb last week, reaching by Bitcoin Loophole a new all-time high of $28,422 on 27 December.

Short-term readings suggest that a top has not yet been reached and that further upward movement could take place.

Can Bitcoin still reach $30,000 in 2020?

The BTC price continued its climb during the week of 21-27 December, reaching another new all-time high of $28,422 on 27 December.

Despite a relatively long upper wick, the weekly candle still looks bullish. Moreover, technical indicators are not yet showing weakness, suggesting that the trend remains bullish.

The daily chart shows the first signs of weakness, visible in the form of a shooting star candle formed on 27 December. The candle was also combined with a bearish divergence in the RSI.

However, both the MACD and the so-called Stochastic Oscillator remain bullish and could allow the upward movement to continue.

Future BTC movement

The six-hour chart for BTC shows the first clear signs of weakness in the form of a bearish divergence in both RSI and MACD.

However, it also shows that BTC has been following an ascending support line since 10 December, which is currently at $25,000.

As long as BTC trades above this support line, it is expected to continue moving higher.

The 30-minute chart shows that BTC has broken out of a descending resistance line that came after a downward move that looked completely corrective (highlighted in red).

Should BTC be able to move above the current resistance area (0.618 Fib retracement), another breakout attempt would be expected – and possibly a new all-time high.

Conversely, the loss of the minor support area at $26,000 could take BTC back to the ascending support line at $25,000.

Conclusion

Bitcoin is expected to make another breakout attempt and possibly reach another all-time high. However, a drop below $26,000 could trigger a significant decline.

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