BTC/USD Analysis – December 06, 2021

Bitcoin Price Prediction

The BTC/USD coin extended its previous week's bearish bias and dropped around the $48,000 level. The price of bitcoin could not stay above the $52,000 and $50,000 support levels. BTC plummeted sharply, shattering several key support levels near $48,000. Most crypto investors, particularly those who invested in Bitcoin, have had a bad few days. However, Bitcoin's value plummeted by 20%. However, this was not a Bitcoin-specific issue.

Almost every cryptocurrency, including Litecoin, suffers from the same issue. The heavy sell-off in Bitcoin was triggered by a drop in global stock markets and spread to other cryptocurrency assets. The cryptocurrency Ether (ETHUSD), 0.72 percent, which is based on the Ethereum blockchain, dropped nearly 15% on Saturday, but it recovered those losses by Sunday night, trading at $4,160. According to Coinmarketcap.com, the global crypto market cap was knocked down by around $400 billion on Saturday before recovering the majority of that.

Bitcoin prices have even fallen below the $45,000 mark, trading near the $40,000 mark. A low was formed, and the price is gradually regaining its losses. It broke through the $45,000 resistance level. Bitcoin's losses could be extended if it fails to break through the $50,000 resistance zone. Immediate support on the downside is near the $48,500 level. At the time of writing, the BTC/USD coin is trading at the 49,058.4 level and consolidating near the range between 48,317.2 and 49,457.2.

Crypto expert Nicholas Merten, founder and CEO of Digifox and host of a famous crypto-focused YouTube channel, tweeted on the weekend that BTC is not in a bear market, which is defined as a drop of 20% or more from a recent high, but warned that the price decline might continue. As a result, this tweet has had no discernible impact on the investor's attitude thus far.

Meanwhile, broad-based US dollar strength was viewed as one of the primary factors keeping BTC/USD prices low. In contrast, Konzum, the largest food manufacturer and retailer in the Western Balkans, has become the first retail chain to accept digital assets as payment in Croatia. Such transactions are currently only available in its online store, but the company aims to expand the service to all of its supermarkets in the near future. This good news could aid the crypto market in limiting any further losses.

BTC/USD Intraday Technical Levels

Support Resistance

50818.03 56966.26

48028.7 60324.57

44669.4 63114.49

Pivot Point: 54176.7

BTC/USD - Technical Outlook

A decisive break above the $50,900 resistance level could pave the way for more gains. The next major obstacle is near $52,500, beyond which the price could continue to rise steadily. The bulls' next target might be about $53,500.

If bitcoin fails to break over the $50,000 resistance level, it may extend its losses. On the downside, there is immediate support near the $48,500 mark.

Near the $47,500 mark, the first substantial support is formed. A breach underneath the $47,500 support level may signal the start of a steep slide. The bears' next target might be $55,000.