It's the holiday season, Bitcoin (BTC) is on a downward trend After plummeting towards the $87,000 area. Although cryptocurrencies have struggled for several months and failed to recover from key resistance levels, one crypto analyst believes that Bitcoin still could cause a massive Christmas rally. The analyst outlines a potential roadmap for this projected rally, but warns that there is still a strong chance that prices will crash further to $80,000 or even lower.
Bitcoin risk plummets to $80,000
Crypto Analyst RBswingtrader share Bitcoin market outlook regarding X the day before Christmas. Outline multiple scenarios that could determine whether cryptocurrencies become stable. Return to uptrend or face further decline. The analyst noted that smart money is now buying Bitcoin in a new zone, warning that it could potentially trigger an eventual price crash. market manipulationcan occur before a trend reversal.
According to his analysis, Bitcoin may still fall It rose to a new local low near $80,000 before strong buyers entered the market. The analyst viewed this potential decline as part of a broader accumulation strategy and stressed the importance of patience.
He shared a chart highlighting BTC trading below the descending orange moving average (MA) after a sharp fall from the $108,519 resistance zone. Analysts pointed out that the cryptocurrency's price had previously failed at the upper range and then turned to strong prices. A downward trend that lasted several weeks.
RBswingtrader has identified further clear points Elliott wave structure On the BTC chart, there are waves labeled 1 to 5, followed by ABC correction pattern. While the third wave accelerated Bitcoin's decline, the fifth wave appears to be developing, but there is no downside target yet. Several major support levels were also highlighted, including $87,106, $86,169, and $83,986.
The analyst warned that a deeper breakdown of these support levels could lead to a fall toward $80,427, potentially extending the floor target closer to $74,185. Bitcoin selling pressure Get stronger. He also plotted multiple Fibonacci retracement levels aligned with the lower support zone for BTC price.
In particular, the volume data at the bottom of the graph Large accumulation tendency Until December. The increase in trading activity supports the view that large companies are taking advantage of the decline to build positions despite Bitcoin's weak price movements.
Is a BTC Christmas rally still possible?
On the RBswingtrader chart, the potential for a Christmas rally in Bitcoin is shown with an upside prediction targeting the $108,519 region if the price recovers from the current lows. The graph shows that the accumulation is increasing in December this year. Bullish divergence in the relative strength index (RSI) This could support upward momentum.
RBswingtrader also noted that the retrieval of key technical levels, including the 0.5 Fibonacci retracement around $96,690 to $96,836, could support Bitcoin's potential upside. At the time of this writing, the leading cryptocurrency is trading at around $87,669.
Featured image created by Dall.E, Charts from Tradingview.com
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