Technical Analysis

Bitcoin’s 12% drop leaves it in a technical vacuum but there’s reason for optimism

Let’s find out who has the upper hand

Wild price moves are no stranger to crypto traders and it looks like the volatility is back.

After a one-way move from $1200 to just shy of the 2017, crypto has tumbled today. The alts have been particularly hard hit but bitcoin is also down 12% to $16,633.

Looking at the chart, there isn’t much in the way of technical support here. The big lines on my chart are the 100-dma at $12646 and the June 2019 high of $13,868.

Still, I think buyers are going to step in relatively quickly here. This one-way move left little in the way of pullbacks for new entries and I believe public interest is building. This is exactly the kind of drop would-be buyers have been looking for.

I wrote earlier this week about the positive December seasonals in bitcoin and there’s also the parallel between 2017 and holiday buying kicking in.

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