Technical Analysis

BTC/USD Analysis – December 23, 2021

By LonghornFX Technical Analysis
Dec 23, 20213 min

Bitcoin Price Prediction

The BTC/USD closed at $48,626.0 after reaching a high of $49,575.10 and a low of $48,459.80. BTC/USD reversed its course and dropped on Wednesday, with minor losses as it moved in a tight range for the day. The former Twitter CEO and current chief of fintech firm Block, Jack Dorsey, replied to a tweet from rap star and Grammy winner Cardi B. The performer asked her 20.5 million followers, "Do you think crypto will replace the dollar?" Jack Dorsey said, "Yes, Bitcoin will, "in response to her question."

The interesting thing about this was that Dorsey did not say crypto in general or a vague blockchain-based technology would replace the dollar, but he straight said that Bitcoin was the heavyweight currency champion of the world. The debate has now reached Congress as politicians from the House of Representatives and Senate have expressed concerns that stablecoins and Bitcoin could undermine the dollar as the global reserve currency. These concerns of politicians and the tweet from Dorsey added to the leading crypto's strength and limited the decline in BTC/USD on Wednesday.

On the other hand, an international trade policy professor at Cornell University, Eswar Prasad, warned that the world's most popular cryptocurrency could fade out in the near future. He said that its downfall would be the lack of efficiency and inability to facilitate exchange as a mode of payment.

According to Prasad, Bitcoin's use of blockchain technology was not very efficient. Blockchain is the technology that underpins cryptocurrencies. Bitcoin and other cryptos are just codes recorded on a blockchain that gets longer and longer as more people use them. According to Prasad, the validation mechanism used by Bitcoin for transactions is environmentally destructive, which will eventually lead to its demise. These negative comments from the Indian-American economist added pressure on BTC/USD and dragged its prices to the downside on Wednesday.

Furthermore, a highly innovative FinTech company, SurgePays, has announced that the initial development of its newest version of its software platform has been completed. The new platform will enable SurgePays store owners to sell specific cryptocurrencies to customers for cash. It means customers with or without a bank account, or credit card, will be able to purchase BTC, ETH, and DOGE at local stores that are part of the company's 8000+ retail store network. Store clerks will facilitate the purchase of between $50 and $1499 worth of cryptocurrencies. This news should also have pushed BTC/USD higher, but the market participants kept the momentum to the downside for Wednesday.

BTC/USD Intraday Technical Levels

Support Resistance

48198.9 49314.2

47771.6 50002.4

47083.5 50429.6

Pivot Point: 48887.0

BTC/USD - Technical Outlook

Bitcoin price created a base and began a new upward trend over the $47,500 barrier. BTC accelerated its rise above the $48,500 mark and the 100 hourly simple moving average. The price rose so far that it broke through the $49,200 resistance level, but the bulls could not push the price above $50,000. A high was made near $49,599, and the price declined.

The next significant resistance level might be $49,200. The primary breakout zone is presently around $49,500. A clear break above the $49,500 resistance level could boost market optimism for a break above $50,000. The bulls' next significant resistance level could be around $51,200.

The first significant support is close to $47,500. It is close to the 50% Fib retracement level of the upward movement from the $45,600 swing low to the $45,599 high. A break below $47,500 on the downside might take the price towards the $46,500 support, from which it could target $45,500. All the best!


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