It’s vacation season, Bitcoin (BTC) is in a downward trend. After plummeting to the $87,000 region. The cryptocurrency has struggled for several months, failing to recover key resistance levels, but crypto analysts believe: Bitcoin could still stage a massive Christmas rally. The analyst warned that a further decline in the price to $80,000 or below is still likely, while outlining a potential roadmap for the expected uptrend.
Bitcoin risks falling to $80,000
Cryptocurrency analyst RBswingtrader shared Bitcoin market outlook from Resume upward trend or face further downtrend. The analyst noted that smart money is currently buying Bitcoin in new areas, potentially causing the final price to crash. manipulationThis can occur before a trend reversal.
According to his analysis, Bitcoin Could Still Fall With a fresh local low of around $80,000 before strong buyers enter the market. Analysts saw this potential decline as part of a broader accumulation strategy, emphasizing the importance of patience.
He shared a chart highlighting BTC trading below the orange moving average (MA), which is falling after a sharp sell-off at the $108,519 resistance zone. The analyst noted that the price of the cryptocurrency had previously failed in the upper range and crossed over to strength. The decline continues for several weeks.
RBswingtrader made a clearer point. Elliott Wave Structure The BTC chart shows waves from 1 to 5, followed by waves ABC calibration pattern. Wave 3 accelerated Bitcoin selling, Wave 5 appears to be developing and the downside target remains open. Several key support levels were also highlighted, including $87,106, $86,169, and $83,986.
The analyst warned that further deepening of this level of support could open the door to a potential sell-off to $80,427 and an extension of the lower target near $74,185 if: Bitcoin Selling Pressure It is strengthened. He also marked several Fibonacci retracement levels in line with the lower support zone in BTC price.
In particular, the trading volume data at the bottom of the chart is mass accumulation trend Until December. The increased trading activity supports the view that large players are taking advantage of the downturn and building positions despite Bitcoin’s weak price action.
Is BTC’s Christmas Rally Still Possible?
A chart from RBswingtrader illustrated a potential Christmas rally for Bitcoin with an upside outlook targeting the $108,519 region if the price recovers from current lows. Looking at the chart, the cumulative amount in December this year is increasing. Bullish divergence in the relative strength index (RSI) It can support upward momentum.
RBswingtrader also noted that a recovery of key technical levels, including the 0.5 Fibonacci retracement near $96,690-$96,836, could support a potential upward move for Bitcoin. As of this writing, the leading cryptocurrency is trading at around $87,669.
Featured image created with Dall.E, chart from Tradingview.com
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