BTC/USD Analysis – December 28, 2021

Bitcoin Price Prediction 

On Tuesday, the BTC/USD is trading sharply bearish, having dropped from a high level of 51,936 to 49,057. This year's tremendous bull run in Bitcoin's price propelled it up in more ways than one. As the world's largest cryptocurrency drew closer to its all-time high, all eyes seemed to be on Bitcoin. This is particularly clear when studying social media posts, which demonstrate a significant increase in the amount of attention they received from the general public this year.

According to Visibrain data, there will be 101 million tweets using the phrase "bitcoin" in 2021. This represents a 350% increase over the amount reported in 2020. The substantial increase in social media attention paid to Bitcoin over the last year may be explained by the rise in the number of individuals becoming aware of cryptocurrency in general. However, the market's massive changes could also be a big part of this.

Every month this year, the crypto industry has been hit with huge news that has significantly influenced Bitcoin's price. Social media was ablaze with mentions of Tesla's $1.5 billion BTC purchase at the start of February. In March, the company announced that it would take Bitcoin as payment, resulting in another surge in mentions. The considerable increase was surpassed only two months later when BTC purchases were halted. Chinese Bitcoin miners fled the nation in the same month, causing another social media avalanche.

Bitcoin price made another effort to break through the $51,800 resistance level. BTC surged near the $52,000 level, where the bears stepped in. A double top pattern appears to be emerging near $52,000. A high was made near $52,111, and the price fell again. There was a break below the $51,200 and $50,500 support levels. On the hourly chart of the BTC/USD pair, there was also a breach below a significant bullish trend line with support near $51,200.

However, Bitcoin is on a bearish run now, having plunged to the 49,000 range again before the year-end. Most of the selling bias seems to be due to profit-taking by investors. So let's take a look at the technical outlook. 

BTC/USD Intraday Technical Levels

Support Resistance

47286.6 49955.6

45650.3 50988.3

44617.6 52624.6

Pivot Point: 48319.3

BTC/USD - Technical Outlook 

The pair traded below the 50 percent Fib retracement level of the upward run from the swing low of $49,477 to the high of $52,111. Bitcoin is currently trading under $50,000 and below the 100 hourly simple moving average. It is also trading below the 76.4 percent Fib retracement level of the upward run from the swing low of $49,477 to the high of $52,111. An immediate support level is around $49,500. The big initial support is close to $49,000.

If the price falls below $49,000, it may move towards the $48,800 support. Any further losses might bring the price down to the $47,500 support level. If bitcoin can maintain above the $49,500 support level, it might begin a solid rise. On the upside, an immediate barrier is near the $50,000 mark. The next significant resistance level could be $50,800, as well as the 100 hourly SMA. A decisive break above the $50,800 resistance level could signal the start of a new uptrend. The bulls' next significant resistance level could be around $51,800. All the best!