Bitcoin's 12% drop leaves it in a technical vacuum but there's reason for optimism

Technical Analysis

Author: Adam Button | bitcoin

Let's find out who has the upper hand

Wild price moves are no stranger to crypto traders and it looks like the volatility is back.

After a one-way move from $1200 to just shy of the 2017, crypto has tumbled today. The alts have been particularly hard hit but bitcoin is also down 12% to $16,633.

Looking at the chart, there isn't much in the way of technical support here. The big lines on my chart are the 100-dma at $12646 and the June 2019 high of $13,868.

Still, I think buyers are going to step in relatively quickly here. This one-way move left little in the way of pullbacks for new entries and I believe public interest is building. This is exactly the kind of drop would-be buyers have been looking for.

I wrote earlier this week about the positive December seasonals in bitcoin and there's also the parallel between 2017 and holiday buying kicking in.

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