Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Bitcoin Above $19K, But Will It Stick?

By FxPro Financial Services Ltd (Alexander Kuptsikevich)CryptocurrencyDec 07, 2020 08:38AM ET
Bitcoin Above $19K, But Will It Stick?
By FxPro Financial Services Ltd (Alexander Kuptsikevich)   |  Dec 07, 2020 08:38AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Bitcoin held the price level above $19K at the end of last week, and at the beginning of the new working week, it is trading around $19,300. If we compare current trading volumes to the beginning of last week, we can see a clear decline by half to $25 billion. So although the market is not falling, traders do not support the current dynamics and are mostly in standby mode. Nobody wants to be an early seller or a late buyer. Meanwhile, the Crypto Fear & Greed Index remains in "extreme greed" mode at 94, indicating a high potential for a correction.

Bitcoin held the price level above $19K
Bitcoin held the price level above $19K

The traditional market has attracted a lot of attention due to renewed growth in stocks, gold, and oil. Against this background, the crypto market is waiting for new triggers. Since the current price dynamic is managed by institutional investors, we may well see waves of decline and increasing interest depending on what happens within traditional assets.
Last week Bitcoin lacked quite a bit in testing the most important technical and psychological level of $20K. This significant test will likely take place this week and after exceeding $20K we will face another profit-taking, which will be enough to launch a correction.
The news around MicroStrategy's purchase of Bitcoins at the price close to $19,500 may become an important factor of Bitcoin support this week. The company bought $50 million worth of coins, while in total they own almost 41K BTC. Although compared to the traditional market, this is a relatively small investment, nevertheless, such an injection may be a very tangible positive impulse for the crypto market.
Crypto market participants are afraid that the outgoing Trump administration may tighten the crypto regulation. However, in this context, we are constantly in uncharted territory. The Democrats also do not guarantee a positive attitude towards Bitcoin and other digital currencies.

It should be noted that judging by the reaction to Facebook (NASDAQ:FB)'s intention to rebrand Libra and launch a stablecoin called Diem, difficult times await stablecoins in general. If the bill on the regulation of stablecoins turns into a law, it will hit not only Diem. The huge industry around Tether (USDT) will be forced to look for new ways of transferring cryptocurrencies into fiat and taking profits.

The FxPro Analyst Team

Bitcoin Above $19K, But Will It Stick?

Related Articles

Bitcoin Above $19K, But Will It Stick?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email