BTCUSD Weekly Outlook – December 3 , 2021

Last Updated on December 4, 2021

Bitcoin Price Forecast

Introduction

The highest price in November also set an All-Time High at 69182.5, suggesting bearish sentiment with a possible early bearish divergence on the monthly time frame. However, as the year comes to a close, we anticipate a price surge into the holiday season as on-chain metrics suggest that institutions still show a bullish sentiment towards the number one crypto-asset.

RaceOption trading platform shows that the BTCUSDT may find support around the 53K price floor

Let’s analyze the charts.

BTCUSD Technical Analysis

Monthly Chart

BTCUSD monthly chart - 3rd Dec 2021

Monthly Resistance Levels: 69202, 66987

Monthly Support Levels:  53068.5, 39500

The monthly candle of November is showing stronger rejection of wicks from the highs of 69202 where the resistance levels are strong. The shape of the November candle has two meanings. The first impression is like an inside bar when combined with the previous candle of October while another aspect is like a Doji which will likely lead to a reverser should the bears take over the zones. Looking left, we can see that the April candle had a similar pattern before certain events took the price down.

If the price can close below the 53068 levels the price will likely hit the support level of 288660. However, if the new month’s candle can take a price high than the ATH it will lead the BTCUSD price for another bullish run.

Weekly Chart

BTCUSD weekly chart - 3rd Dec 2021

Weekly Resistance Levels: 69182, 64990,

Weekly Support Levels:  53304, 40000, 29500

The previous resistance zones of 12th April 2021 generated a reaction that led to the Bears taking over. Now the resistance zone is going through a retest as we can see a bearish engulfing pattern on 15th November 2021 which took the price down. If the Bears should keep dominating the market, we may see the price of bitcoin dropping lower if we get a close below the 53304 levels.

Looking at the connection of trendline from the support levels on the weekly time frame, the price has slowed down. A breakout below the trendline will take the price lower but a rejection of price around the trendline will bring about a bounce to the upside around the 53304 zones.

Daily Chart

BTCUSD daily chart - 3rd Dec 2021

Daily Resistance 69174, 59508, 

Daily Support 53150, 48000

BTCUSD pair has been in consolidation for some days. The momentum is bearish as we keep seeing the bearish candle take out every move of the bulls. Crypto brokers will be observing the reaction of price as it is around a resistance zone. A breakout above the resistance level of 59508 will take the price higher but if the bears can push it back and close lower than the support level of 53150, the price will fall lower.

Bullish Scenario:

A bullish scenario is possible on the daily time frame because the price is in a confluence zone. If the Bulls can reject the Bears around the current level, we shall see a bullish surge from one of 53118 levels.

 Bearish Scenario:

On the daily chart, the bears need to close below the 53118 level because it is a confluence zone with a strong bearish candle if the price of bitcoin must fall lower.

Bitcoin BTC News Events 

BITCOIN P2P RECORDS OVER $186 BILLION

The average Net transactions for PayPal were surpassed by Bitcoin P2P in this year’s transaction records and it became the third world biggest processing payment after the likes of Mastercard and Visa. Comparing the BTC with other fiat payment giants, reports from Blockdata reveal that bitcoin completed more US dollar transactions than PayPal every quarter, and records show that it was over $186 billion.

However, the number one cryptocurrency still needs to do better if it needs to compete with other established payments system like Mastercard and Visa card which does over $1.7 trillion and $3.1 trillion in a quarter. In terms of market capitalization, bitcoin is around $1.1tillion above the other companies when put together. Their combined market cap is about $989 billion when the three companies come together.

For bitcoin to perform like that of the Mastercard and Visa, it will need to increase its transaction volume by over 260% for it to reach the network levels of Mastercard and about 280% to compete with that of the visa network. There are some challenges that bitcoin must overcome for it to leapfrog Mastercard and Visa in the future. The projected growth is an area of concern for the BTC coin, the regulations affecting both the cryptocurrency and fiat currency in the future will be put into consideration, and the constant upgrade of technology.

The volume of daily transactions handled by Mastercard and Visa is above 350 million and 580 million respectively daily. However, some analysts see the report as flawed since daily transactions are not translated into dollar transactions automatically. Bitcoin has done well this year by setting ATH records of the chart and also ranking up with companies that have been in existence over the past four decades.

BTCUSD Conclusion and Projection

The price of bitcoin is sitting on a confluence zone and the zone triggers a reaction to either of the sides. Because of the condition of the market, it is better for the crypto broker to wait for a clearer direction

James S. Martin
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