Is A Bitcoin Christmas Rally Possible? Why Price Could Crash To $80,000
It’s the vacation season, and Bitcoin (BTC) is trading downwards after plunging towards the $87,000 area. Although the cryptocurrency has struggled for months, failing to reclaim key resistance ranges, a crypto analyst believes Bitcoin could still stage a major Christmas rally. As the analyst outlines a possible roadmap for this projected upswing, he cautions {that a} additional worth crash to $80,000, and even decrease, stays a robust chance.
Bitcoin Risks Crash To $80,000
Crypto analyst RBswingtrader shared a Bitcoin market outlook on X the day earlier than Christmas, outlining a number of eventualities that might decide whether or not the cryptocurrency resumes an upward trend or faces further downside. The analyst famous that good cash is at present shopping for Bitcoin in a brand new zone and in addition cautioned {that a} closing worth crash, probably pushed by market manipulation, may happen earlier than a development reversal.
According to his evaluation, Bitcoin could still decline to a recent native low round $80,000 earlier than sturdy consumers enter the market. The analyst pressured the significance of endurance, viewing this potential dip as a part of a broader accumulation technique.
He shared a chart highlighting BTC buying and selling beneath a declining orange Moving Average (MA) after a pointy selloff from the $108,519 resistance zone. The analyst famous that the cryptocurrency’s worth had beforehand failed on the higher vary and rolled over into a robust downtrend that has persisted for weeks.
RBswingtrader additional pinpointed a transparent Elliott Wave structure on the BTC chart, with waves labeled from one by 5, adopted by an ABC corrective pattern. Wave 3 accelerated Bitcoin’s selloff, whereas Wave 5 seems to be growing, with draw back targets nonetheless open. Multiple key assist ranges had been additionally highlighted, together with $87,106, $86,169, and $83,986.
The analyst warned {that a} deeper breakdown from these assist ranges may open the door to a possible crash towards $80,427, with an prolonged decrease goal close to $74,185 if Bitcoin’s selling pressure intensifies. He additionally plotted a number of Fibonacci retracement ranges that align with the decrease assist zones for the BTC worth.
Notably, the quantity knowledge on the backside of the chart signifies a large accumulation trend by December. Increased buying and selling exercise helps the view that enormous gamers are benefiting from dips and constructing positions regardless of Bitcoin’s weak worth motion.
Is A Christmas Rally Still Possible For BTC?
In RBswingtrader’s chart, a possible Christmas rally for Bitcoin was illustrated with an upward projection focusing on the $108,519 area if the value recovers from its present lows. The chart indicated that rising accumulation quantity this December and the Bullish Divergence in the Relative Strength Index (RSI) may assist upward momentum.
RBswingtrader additionally famous that reclaiming key technical ranges, together with the 0.5 Fibonacci Retracement close to $96,690-$96,836, may assist Bitcoin’s potential upward transfer. At the time of writing, the main cryptocurrency is buying and selling round $87,669.
