Bitcoin and Litecoin – Weekly Technical Analysis – December 21st, 2020

Bitcoin and Litecoin – Weekly Technical Analysis – December 21st, 2020

Bob Mason

Bitcoin

Bitcoin, BTC to USD, rallied by 22.14% in the week ending 20th December. Reversing a 1.18% fall from the previous week with interest, Bitcoin ended the week at $23,427.0.

It was a mixed start to the week. Bitcoin fell to a Monday intraweek low $19,008.3 before making a move.

Steering clear of the first major support level at $18,053, Bitcoin surged to a Sunday intraweek high and a new swing hi $24,244.0.

Bitcoin broke through the week’s major resistance levels on the way to a new all-time high.

A bearish end to the week, saw Bitcoin fall back to end the week at sub-$23,500 levels. In spite of the pullback, however, Bitcoin avoided a fall back through the third major resistance level at $22,418.

6 days in the green that included a 9.55% rally on Wednesday and a 6.89% gain on Thursday delivered the upside.

For the week ahead

Bitcoin would need to avoid a fall through $22,186 pivot to support a run the first major resistance level at $25,364.

Support from the broader market would be needed for Bitcoin to break through to $25,000 levels.

Barring an extended crypto rally, the first major resistance level and resistance at $25,500 would likely cap any upside.

In the event of another breakout, Bitcoin could test resistance at $28,000 before any pullback. The second major resistance level sits at $27,301.

Failure to avoid a fall through the $22,186 pivot would bring the first major support level at $20,249 into play.

Barring another extended sell-off, however, Bitcoin should steer clear of sub-$20,000 support levels and the 23.6% FIB of $19,374. The second major support level sits at $17,071.

At the time of writing, Bitcoin was up by 1.02% to $23,666.0. A mixed start to the week on Monday saw Bitcoin fall to an early morning low $23,280.0 before striking a high $23,693.0.

Bitcoin left the major support and resistance levels untested at the start of the week.

Litecoin

Litecoin surged by 39.48% in the week ending 20th December. Following a 1.65% decline from the previous week, Litecoin ended the week at $114.65.