Technical Analysis

BTC/USD Analysis – December 10,s 2021

By LonghornFX Technical Analysis
Dec 10, 20213 min

Bitcoin Price Prediction

Bitcoin fell for the first time in five trading sessions, with losses escalating after failing to maintain the upward momentum observed following the flash crash over the weekend. The largest digital token fell below $50,000, with losses extending in New York afternoon trading. As of 4:06 p.m., Bitcoin was down 6% to $47,602, while other digital assets were also down. Smaller coins, such as Monero and EOS, were particularly heavily hit. On a technical level, some analysts believe Bitcoin is stuck in a no-land man's between different moving averages. The coin could be forming a head-and-shoulders pattern, which would indicate a negative trend.

Meanwhile, Democratic lawmaker Alexandria Ocasio-Cortez said that she avoids any investments that could represent a conflict of interest, including crypto, and suggested her fellow lawmakers do the same. She elaborated that as a member of the House of Representatives Financial Services Committee, she felt that it was inappropriate for her to hold BTC or other digital assets because lawmakers have access to sensitive information and upcoming policy. She believes that doing so will only serve to keep her impartial in policymaking because she desires to do her job as ethically and impartially as possible.

Moreover, on Wednesday, chief executives of large cryptocurrency firms appeared before Congress to testify and provide information about their products and services as lawmakers struggled to bring the market within public policy and regulatory frameworks. This would improve lawmakers' understanding of the cryptocurrency industry and allow them to enact necessary regulations, which would have a negative impact on the entire industry, causing BTC to drop in value on Wednesday.

On the other hand, on Wednesday, Foundry Digital, a mining pool in the USA, became the top bitcoin miner as it launched a bitcoin mining rig marketplace called Foundryx. The company claimed that it had access to more than 40,000 mining machines ready for sale. The company has become the world's largest bitcoin miner in terms of hash rate. This news kept the losses in BTC/USD limited for the session.

Additionally, the third-largest holder of Bitcoin, Mystery Bitcoin Whale, added more than $150 million worth of BTC to their holdings following the latest price decline. A report from blockchain monitoring service BitInfoCharts suggested that an anonymous investor now holds close to $6 billion worth of BTC.

BTC/USD Intraday Technical Levels

Support Resistance

49834.4 51701.4

49034.7 52768.7

47967.4 53568.4

Pivot Point: 50901.7

BTC/USD - Technical Outlook

Bitcoin's price began a new drop from the $52,000 resistance level. BTC fell underneath the 100 hourly simple moving average after breaching the $49,000 support level. There was also a decline below $48,000, although the bulls were persistent near the $47,300 level. A bottom has been set near $47,298 and the price is presently correcting. The price rose just above $48,000 resistance level.

Bitcoin surpassed the 23.6 percent Fib retracement level of the decline from the $51,955 swing high to the $47,298 low. The price is currently trading below $49,500 as well as the 100 hourly simple moving average. On the upside, an immediate barrier is around the $49,000 mark. The next significant obstacle is located near the $49,500 level. On the hourly chart of the BTC/USD pair, a big negative trend line is forming with resistance near $49,900.


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