It has certainly been a volatile trading week for Bitcoin, which plunged 20% during Friday’s trading session, with prices briefly dipping below $13000 before recovering towards $14000.
The aggressively bearish price action witnessed this week may prompt investors to start questioning if Bitcoin will recover from the selloff or remain depressed moving into the New Year.
From a technical standpoint, Bitcoin is at risk of dropping further if prices fail to keep above $13000. Sustained weakness below this level could encourage a decline back towards $11000.
Lukman Otunuga, is a Research Analyst at FXTM