Bitcoin dipped to $96,000 amid oversold signals from momentum indicators. The primary trend is bearish, with a target of $94,300 if the $100,000 key resistance holds.
Bitcoin Technical Analysis – 20-December-2024
BTC started dipping after the prices reached their all-time highs at $108,400. The downtrend escalated after the digital gold fell below $104,000. As of this writing, BTC/USD trades at approximately $97,900, erasing 0.5% of yesterday’s losses.
The primary trend for the technical indicators should be considered bearish because Bitcoin prices are below the 50-period simple moving average. However, the Stochastic Oscillator depicts 15 in the description, hinting at an oversold market.
Therefore, Bitcoin has the potential to rise toward upper resistance levels before the downtrend resumes.
Watch Bitcoin Drop Risk to $92,000
The immediate support is at $96,500. From a technical standpoint, the bear market resumes if sellers push Bitcoin prices below this level.
In this scenario, the next bearish target could be the $94,300 mark. Furthermore, Bitcoin could drop to $92,000 if the selling pressure persists.
The Bullish Scenario
Please note that the bear market should be invalidated if BTC/USD exceeds the key resistance level of $100,000. If this scenario unfolds, the current uptick in momentum could extend to $102,000.