Technical analysis is a study of probabilities and, based on this analysis, we identify the best zones and opportunities to make money (or to avoid losing).
Understand better what can happen in the week thanks to our analysis that will sweep the cryptocurrency market and filter the best opportunities for you.
The study below is not a guide to buying or selling. Manage your risk properly.
Bitcoin Graphical Analysis
Bitcoin Technical Analysis: 4 hour chart.
Today's analysis will be more educational, for those who like to operate.
In the green triangle, we had an ascending triangle formation, which is a bullish formation, which would most likely break for the target that would be close to $ 26,000.
However, at dawn on Monday, the entire market fell along with the world stock exchanges, which fell due to the British Prime Minister's pronouncement on a new variant of the Corona Virus there, which caused the stock markets to plummet on Monday, but they have already resumed. normality today.
Bitcoin then held on to our zone highlighted with a blue rectangle, which indicates a consolidation zone.
The Consolidation Zone is an area where the price is "walking sideways", or lateralized, and is a good region for the price to assimilate a new direction.
As our main direction is bullish, it would be natural to see bitcoin breaking through resistance and rising further.
On the chart we also highlight the best purchase of the moment, which would be a more pronounced drop to closer to US $ 20,000, which would be an excellent risk return.
On the chart the best region is in the range of $ 20500 - $ 20800, not something "mandatory", that is, the price can ignore and continue to rise.
However, it would be an excellent purchase if it happened.
The direction continues upwards and the price can reach the levels of U $ 26,000, trend of the moment is upwards.
Main shopping zone remains the range closer to $ 20,000 - $ 21,000
Analysis of Altcoins
Altcoins: Alternative Currencies to Bitcoin
Altcoins are on the back burner as Bitcoin still prevails in the market.
We will recommend other currencies again when the sea is calmer for them.
At the moment, the vast majority will rise in the dollar quotation, but fall in the BTC quotation.
Altseason (euphoria season for altcoins) will come after Bitcoin has calmed down.
Be patient and think long term.
By: Isabela Ruiz Roque da Silva
HashRate (Total Hash Rate)
The Total Hash Rate (TH / s) is a metric to measure the mining power of the blockchain network. The higher the number of hashrates, the greater the security of the network and the greater its resistance to attacks in general. It is an important metric for analyzing miners' investments in mining equipment and long-term investments.
Figure 1. Total hash rate on December 14th. Source: Blockchain.com.
Figure 2. Total hash rate on December 17th. Source: Blockchain.com.
During the week of December 14th, the total hash rate dropped slightly on the chart, but still remained above 130m. Starting on December 16th, we started a strong bullish move in Bitcoin, but for now miners are still not mining as much as before. This does not mean that the market is weak, but we are at a peculiar time of year when many realize their profits because it is the end of the year. Looking at the graph of this fundamentalist indicator, we still have a high probability of continuing Bitcoin's rise for the next few weeks.
NVT (Moving Value)
The NTV is an indicator that indicates whether the price of Bitcoin is in line with the financial volume of the cryptocurrency in the last 90 days: if the price of the cryptocurrency has gone up and there is little volume in the market (few transactions in the currency), the indicator will always show a peak.
Figure 3. Bitcoin NVT, December 14, 2020. Source: Coinmetrics.io.
Figure 4. Bitcoin NVT, December 20, 2020. Source: Coinmetrics.io.
During the past week, the NVT fell below 50 (which is great), but on 12/18 it started to climb and slightly exceeded 100. Today we have an NVT still in the region of 100. In this case, the bigger it is our NVT, the bigger the red light than what can happen with the price of Bitcoin. In this case, the NVT is indicating a drop in the short term, at least to reset this index a bit to have gas for another big rise.
When analyzing the graphical and fundamentalist aspect, both indicate that a correction would be healthy, which already started to occur when Bitcoin reached $ 22,800.
For outsiders, we recommend to be patient and seek to take advantage of a possible withdrawal close to $ 21,000.
For those inside, the upward trend remains and we can see Bitcoin close to $ 26,000.
Altcoins are currently out of volume, but we believe in a strong explosion soon.