Cryptocurrency
Bitcoin Likely to Consolidate Before December Rise Toward $20K, Say Analysts
Bitcoin Likely to Consolidate Before December Rise Toward $20K, Say Analysts: CoinDesk reports, “After the recent rapid rally, the bitcoin (BTC) market is likely to take a breather before continuing its rise toward the end of the year, analysts told CoinDesk. ‘The cryptocurrency may consolidate for a short period before moving higher into Christmas,’ said […]
Bitcoin Likely to Consolidate Before December Rise Toward $20K, Say Analysts:
CoinDesk reports, “After the recent rapid rally, the bitcoin (BTC) market is likely to take a breather before continuing its rise toward the end of the year, analysts told CoinDesk.
‘The cryptocurrency may consolidate for a short period before moving higher into Christmas,’ said Chris Thomas, head of digital assets at Swissquote Bank.
Indeed, further notable gains look unlikely in the short term, as the cryptocurrency’s 60% rally from $9,800 to $15,900 seen over the past two months looks overstretched, per the technical charts. Both the 14-day and 14-week relative strength indices are hovering well above 70, indicating overbought conditions and scope for consolidation or minor pullback.
Echoing Thomas’ comments, Patrick Heusser, senior cryptocurrency trader at Zurich-based Crypto Broker AG, expects bitcoin (BTC, +2.47%) to consolidate in the range of $14,000 to $16,000 in the next few weeks. However, he expects the pause to allow a rally in alternative cryptocurrencies, most of which have lagged bitcoin in the past two months.
Others suggest bitcoin may be heading for more than consolidation. ‘Bitcoin is overbought after surging through critical resistance at $14,000, which suggests we could see a period of correction and consolidation,’ Joel Kruger, a currency strategist at LMAX Digital said…”