As the year 2020 approaches its end, Bitcoin seems to have entered the “roller coaster” mode for the last two weeks. At the end of November 2020, a FUD tweet from Brian Armstrong caused a significant drop in the Bitcoin price.
Within a few hours, the Bitcoin price went from $19.4K to just $16.4K. Many thought that this sudden drop in the Bitcoin price was the beginning of the major correction that everyone was expecting after the bull rally that Bitcoin price has been experiencing since the beginning of October 2020.
This was a mistake. The Bitcoin current bull rally was supported by smart money. Whales, institutional investors, and billionaires who have just taken positions in Bitcoin have a long-term vision.
They will not panic at the slightest drop in Bitcoin price as retail investors did at the end of 2017.
The Bitcoin price has therefore started to rise again to beat a new All-Time High (ATH) on December 1, 2020 close to $20K. It then became quite clear that the $20K was a real psychological barrier for Bitcoin.
After several rejections of this barrier, with the Bitcoin price dropping below $19K each time, we had a stronger correction this week. The Bitcoin price tested support at $17.5K.
I was even wondering on Friday, December 11, 2020, how low the Bitcoin price could fall over the rest of December 2020. As I explained in this article, the $16K zone was crucial as support. In terms of resistance, it was the $18.5K zone that Bitcoin had to breakthrough.
After a rather quiet start to the weekend, the Bitcoin price accelerated its rise on Saturday evening and Sunday morning. At the time of writing, the Bitcoin price is at $19.3K.
This confirms that Bitcoin price is currently in the “roller coaster” mode:
With every drop in the Bitcoin price, we see strong hands coming to strengthen their positions. Those who sell out of fear let strong hands take advantage of this.
To take advantage of this situation, you have to be smart and buy the dip as we say in the Bitcoin world.
Buying Bitcoin under $20K is an incredible opportunity. In the last couple of weeks, you have had several opportunities to buy Bitcoin under $18K. If you don’t take advantage of this opportunity, others will do it for you.
When Bitcoin price reaches $100K by the end of 2021, you may have eternal regrets.
A few days ago, I saw a tweet on Twitter from someone regretting not buying Bitcoin in 2016 when it was under $500. Everyone has that regret of course. Nevertheless, you have to accept the reality of the moment.
Bitcoin price is what it is today. You have to accept it and move forward if you want to be among those who will benefit from its revolution.
In a few years, you will see tweets from people saying they regret not having bought Bitcoin when its price was $19K. To avoid being among those who will express those regrets, you must take advantage of all the price drops of Bitcoin to accumulate more BTC.
Be smart, and buy the dips.
For the coming week, the most total uncertainty remains. Will Bitcoin price try to break the $20K psychological barrier again?
Difficult to answer because Bitcoin’s movement of this weekend will create a new CME Gap that could be closed in the first few days of the week. On Friday, CME futures closed at $18,115. The CME Gaps are closed 95% of the time in the first few days after their creation.
Another CME Gap was created at $17,015 the previous week which has not yet be closed.
I will therefore not take the risk of making any predictions for the coming days. The areas to watch for in the next few hours will be the $19,400 — $19,600 resistance zone and the $18,500 — $18,600 support zone. Crossing the $19,600 could allow Bitcoin to make another attempt to break the $20K.
A drop below $18,500 would make it likely that the $16K zone would again be tested.
To take advantage of the situation, it’s up to you to follow my usual advice:
Be Strong, Buy The Dip, Stay a Bitcoin HODLer.
This article was first published on Medium.
