23rd December: BTC/USD Balancing between $23,000 and $24,000
Konstantin Anissimov, Executive Director at CEX.IO, shares his insights about the Bitcoin (BTC) and Ethereum (ETH) daily price movements.
On 23rd December 2020, BTC/USD opened at 23,838 and reached 24,023 in the next two hours. Being pressured down by the local resistance level, the pair was sent down to 23,478 at 05:00 UTC. In the next five hours, the pair was mainly trading sideways, keeping above the 23,460 level. At 10:00 UTC, the pair increased the falling traction and broke down below 23,460 at the close of the day’s tenth hourly candlestick. Between 11:00 and 12:00 UTC, BTC/USD fell to its daily low at 23,801.
The market reacted to the fall with a high buying sentiment, as the pair had reached 23,871 by 13:00 UTC. Between 13:00 and 14:00 UTC, the pair spiked to 24,100 and quickly plunged to 23,492. Until 17:00 UTC, BTC/USD continued rising and falling, edging slightly down. The hourly candlestick between 17:00 and 18:00 UTC closed at 24,410.
BTC continues its sideways correction, after suddenly reaching the $24,000 mark last week. This is a clear sign of Bitcoin’s maturity as an asset. The uptrend continues and does not seem to be in any danger of a near-term downside reversal.
The 24,000 handle remains a local resistance for BTC/USD, but it only stands as long as this correction continues. Considering the situation on the daily timeframe and this correction’s model, I believe it will end with another upswing. There is too much buying pressure on BTC/USD now to expect a downside reversal. Therefore, 24,000 is the upside target for BTC/USD for the rest of the week of 21st December, and we may see 25,500 by the end of 2020.
Ether spent the 23rd December, slipping downward throughout the day. ETH/USD opened the day at 632.7. The pair only edged slightly up in the day’s first hour, and the second hourly candlestick opened with an upside slippage at 636, but, starting from 01:00 UTC, Ether was losing valuation. Having closed the fifth-hour candlestick at 614 at, ETH/USD took two hours’ intermission in the falling but then resumed the falling mode until 13:00 UTC, with a hammer forming on the hourly timeframe between 11:00 and 12:00 UTC.
The upside impulse formed by the hammer helped the pair briefly recover the losses by rising to 620 close to 12:00 UTC. But this reversal was retraced in the next four hours as the pair eventually closed at 596.85 between 16:00 and 17:00 UTC on the hourly timeframe in a long bullish candlestick with no wicks. Later on, some of those losses were recovered, and the pair was trading around 610 between 18:00 and 20:00 UTC.
ETH/USD has not been able to return to 650, which currently stays the pair’s near-term target. Presently, the ETH 2.0 deposit contract might be playing a negative role for Ether, making the locked Ether immovable as long as Etherum is not fully transmitted onto the ETH 2.0 Beacon chain, which must happen when its Phase 2 is completed. But at the present levels, a buy order for ETH/USD may be lucrative as the pair is being supported by an intraday support level at 608.