Bitcoin Touches All-Time New High at US$19,920.53, Kicks in Extreme Volatility and Drops 1,500+ points in 1-Hour
Bitcoin price (BTC/USD) again reached a new all-time high in the early hours of Tuesday (December 1, 2020), even before the US stock market had opened. The new all-time high is $19,920.53. Once the BTC price reached yet another peak and tried to breach the US$20,000-level, it met strong resistance and sparked off wild volatility.
Bitcoin Price: What Happened Actually?
After Bitcoin price reached the all-time new high, in just 2-hours the BTC price to USD tumbled down by more than 1,500 points to reach the US$18,450-level.
Today’s 24-hour high and low at CoinDesk are $19,920.53 and $18,151.45 respectively, a spread of US$1,769.08. The volatility of Bitcoin price is so high that prices are gyrating out of control and no one can tell where it will be at the time this news is published.
What caused this Massive Sell-off?
As the world came to know that the Bitcoin price has reached an all-time new high, and the buying pressure reached enormous levels, the whales sitting comfortably in the green started to book sizable profits. That’s what led to the steep fall of BTC price by more than 1,700 points after reaching the new all-time high level.
Has the BTC/USD Price Stabilized?
At the time of writing this news, BTC/USD is trading at US$19,299.33 with 24-hour net returns still in the red (-2.39%). However, the year-till-date return is still showing a massive positive return of around +160%.
Technical Indicators of BTC Price
The technical indicators are still indicating a buying call for investors. The Bitcoin price is currently trading at US$19,299.33.
Let’s take a look at the Fibonacci resistance and support levels:
Fibonacci Resistance Levels:
- R1: 19,318.2
- R2: 19,451.2
- R3: 19666.5
- Fibonacci Support Levels:
- S1: 18,887.4
- S2: 18,754.4
- S3: 18,539.1
Moving averages are also pointing to make a buying call predominantly. Except for the 20-day simple moving average, all other MAs are pointing out at a buying call.
Let’s check out the Fibonacci resistance and support levels:
Simple Moving Averages:
- 200-day MA: 18,224.9
- 100-day MA: 18,170.4
- 50-day MA: 18,926.4
- 20-day MA: 19,423.2
- 10-day MA: 19,326.7
- 5-day MA: 19,108.6
Exponential Moving Averages:
- 200-day MA: 18,236.3
- 100-day MA: 18,596.4
- 50-day MA: 18,918.9
- 20-day MA: 19,277.8
- 10-day MA: 19,298.1
- 5-day MA: 19,243.1
Can Bitcoin Price reach $25,000 Fib Level?
With the Bitcoin price setting new all-time highs on consecutive days and inching towards the US$20,000 level, US$25,000 Fib level is the most logical next target. Though BTC/USD is experiencing extreme volatility in the last few days and it is experiencing strong resistance at the US$20,000-level, many crypto analysts are betting for the next Fib target at $24,800, sitting just below US$25,000.
It is important to note that the 0.618 Fib retracement level at US$13,800 kickstarted the on-going bullish impulse, which made Bitcoin price achieve a new all-time high after waiting for 3-years time (last achieved in December 2017). Now, it remains to be seen whether the 0.618 level can once again become a target (in the form of support for any major corrections) and spark off a new bullish run towards the US$25,000 level.
