BTC/USD Analysis – December 27 2021

Bitcoin Price Prediction 

The BTC/USD was closed at $50,797.0 after reaching a high of $51,281.0 and a low of $49.473.0. On Sunday, BTC/USD reversed course and recovered minor losses from previous sessions. The President of El Salvador, Nayib Bukele, announced on Friday that Bitcoin was the real revolution that the world is seeing and that days for fiat currency were limited and that the days of fiat currency were gone for good.

He targeted those in his statement, which raised questions regarding El Salvador's legalizing Bitcoin. He further said that those whom international organizations have called the "Bitcoin Experiment" only watched how mass adoption changes a country's economy. He added that El Salvador was the spark that ignited the real revolution. These comments from Bukele added some positive momentum in BTC/USD prices.

On the other hand, the former UK Chancellor, Lord Hammond, has reportedly warned against investing in cryptocurrencies. He called investing in cryptocurrency "gambling money" and noted that people should be extremely cautious as many people regard it closer to gaming than serious investing. Nonetheless, he has taken the senior advisor position at CryptoFriM Copper, which he joined in October. These comments from a senior advisor of a crypto firm added pressure to the rising prices of BTC/USD.

Meanwhile, market researcher Jim Bianco said that used car prices increased faster than bitcoin and other assets. He further said that if you want to know what the best investment you made in 2021 is, it's that car sitting in your garage. The Bianco researcher said that the prices of used cars were appreciating faster than the stock market and, lately, faster than some cryptocurrencies.

The price of bitcoin has increased by only 5% in the last four months, while the S&P 500 has risen by 26% this year; however, the price of used cars has soared by more than 20% in the last four months. This study had a negative impact on the rising prices of BTC/USD on Monday.

Moreover, hundreds of Salvadorans claimed that money from their bitcoin accounts was disappearing. In September, the government gave each citizen the US $30 in bitcoin via each person's Chivo wallet, a government's digital account. The coin could be used for shopping or paying taxes. However, citizens started claiming that the stores had not received their payments and the funds had disappeared from their accounts. This news further weighed on the BTC/USD on Monday.

BTC/USD Intraday Technical Levels

Support Resistance

49753.0 51561.0

48709.0 52325.0

47945.0 53369.0

Pivot Point: 50517.0

BTC/USD - Technical Outlook 

Bitcoin's price has begun a slight downward retracement from the $51,800 level. BTC fell below $51,200, entering a negative zone in the immediate term. There was a breach below the 50 percent Fib retracement level of the upward move increase from the swing low of $48,105 to the high of $51,800. There was even a drop below $50,000 and the 100 hourly simple moving average.

On the upside, an immediate barrier is near the $51,200 mark. The next significant resistance level might be $51,500. A decisive break above the $51,500 resistance level might kick-start a new uptrend. The bulls' next significant resistance level might be around $53,500. If bitcoin fails to break through the $51,200 barrier level, it may begin another downtrend. On the downside, there is immediate support near the $50,200 level.

The first large contribution is close to $50,000. If the price falls below $50,000, it may move towards the $49,400 support level. Any further losses might bring the price down to the $48,500 support level. All the best!