In the past four days, the trading price of Bitcoin (BTC) has continued hovering around $16,979, which is the 20-day EMA for the asset. It suggests that BTC has mainly remained less volatile throughout the period.
Bulls Wanted to Push BTC
As expected from the bulls, they wanted to push the trading price of the asset to a higher level. Therefore, they made their attempt on December 5 in hopes that they will be able to make it happen.
However, things did not work out for the bulls and the bears showed that they were the boss. On December 5, the bulls started to push the trading price of Bitcoin.
They wanted to push it over the $17,000 again and hoped the bears will not give them much of a challenge. However, the bulls proved that they are in control of the trend and started selling BTC on a large scale.
They launched a strong selling spree that turned the bulls down and moved BTC’s price on a negative course.
Long Wick was formed
The back-and-forth attempts from the bulls and the bears ended up forming a long wick on the candlestick pattern for the particular day.
This indicated that the bears are still strong and they may not let the bulls run a strong rally. They may let them push BTC to a certain level such as the 20-day EMA but not more than that.
The bears are not ready to let the bulls run the show and are determined to sell BTC as it reaches a higher level. For now, it can be expected that the bears will counter every strong rally with a strong selling spree.
Strong Resistance Levels
According to historical data, there are two main resistance levels that the bears may not abandon very easily.
The first overhead resistance level is $17,622 while the second resistance level is $18,223 (50-day SMA). The analysts expect that the bears will be defending these particular levels with all their might.
Therefore, the bulls will have to increase their firepower against the bears so they can force them out of these zones.
If the bears manage to pull BTC’s price below the 20-day EMA and the bulls push it over the mark, then the bulls will have proven something similar.
With the bulls protecting the 20-day EMA with vigor, they will have the opportunity of pushing BTC’s price higher.
If they are able to do it, then the trading price of BTC will successfully rise over the particular resistance levels. This would grant more power to the bulls versus the bears.
As the buying momentum remains bullish, the trading price of BTC will first cross the $20,000 barrier and then cross $21,500.