BTC/USD Analysis – December 07, 2021

Bitcoin Price Prediction

The BTC/USD coin succeeded in stopping its previous day's bearish bias and climbed back to the $51,000 level. Bitcoin is regaining ground and trades for more than $51,000 against the US dollar. After strengthening overnight in line with equity markets and other risk assets, bitcoin climbed 1.5 percent on the day, but many crypto traders remained on edge following Saturday's steep and unexpected drop.

On Saturday, Bitcoin plummeted as much as 22% to just under $42,000 due to profit-taking and macro-economic concerns. According to reports, an institution sold over $500 million worth of bitcoin, causing "aggressive liquidations" in the crypto derivatives market and causing the price to plummet. However, the losses were short-lived, and prices recovered considerably later in the session.

This is because people's sentiment towards cryptocurrency is still positive, and market sentiment is improving, as evidenced by Monday's risk-on mood. According to Edison Pun, senior market analyst at Saxo Markets in Hong Kong, Omicron's effect appears to be far milder than the market has absorbed. At this time, the BTC/USD currency is currently trading at 51,060.9 and consolidating in the range between 50,378.7 and 51,351.1. Moving ahead, the new downtrend may begin if bitcoin fails to break through the $51,000 barrier level.

According to data from cryptocurrency analytics firm Santiment, after the weekend's cryptocurrency market slump, investors' interest in buying the dip skyrocketed, with the usage of the word "buy the dip" on social media reaching its highest level in three months. This report has an additional positive impact on BTC prices.

Meanwhile, broad-based US dollar strength was seen as one of the critical factors holding back any further gains in BTC/USD prices. On Tuesday morning, the dollar was higher in Asia as fears over the omicron COVID-19 version began to fade. Even though there is still much uncertainty about Omicron's health and economic implications, investors have reacted positively to news from South Africa that a massive wave of hospitalizations has not accompanied the exponential growth in Omicron infections. The US Dollar Index Futures, which measures the value of the US dollar against a basket of other currencies, fell 0.9% to 96.245.

BTC/USD Intraday Technical Levels

Support Resistance

47983.49 51334.80

45895.12 52597.74

44632.18 54686.11

Pivot Point: 49246.43

BTC/USD - Technical Outlook

Bitcoin is trading with a bullish bias, having reached the resistance area of 51,335 level. Closing of candles below 51,334 level extends solid resistance to BTC. However, a spike in demand can slice through the 51,334 resistance level to expose its price towards 52,600 or 54,586 levels.

On the bearish side, the pivot point support prevails at 49,246 level, and violation of this exposes BTC/USD towards 45,895.12 or 44,632.18 level. The technical indicators such as RSI and Stoch support an uptrend; therefore, bullish bias dominates over 49,246 levels, all the best!