Bitcoin price drops below key support, weekly outlook is bearish
On November 25, 2019, the Bitcoin price reached a low of $ 6618 and immediately reversed, reaching a high of $ 7913 after four days and it has been declining ever since.
The price is in a descending wedge and continues to trade inside this wedge until the end of December and then breaks out. After that, it will confirm a fractal from 2018 indicating price has bottomed out.
Analyst “Dave the Wave” outlined a weakness for Bitcoin’s price that shows the movement from a low on November 25 similar to December 2018 bottom.
… the capitulation should not be as aggressive as last time.
Taking the medium term moving average [200 MDA], there’s a good chance the extension below it would only amount to half this time round with reduced volatility and an ongoing bull market in mind. pic.twitter.com/yas5SYafmD
— dave the wave (@davthewave) December 16, 2019
In addition, he used the 200-day moving average (MA) to indicate that volatility has been declining since November. On December 15, 2018, the price fell by 50% to below its 200-day MA. On November 25, 2019, it was about 27% lower – suggesting that the price was still close to its 200-day MA despite a significant drop.
Currently, the Bitcoin price just broke below the small support of $ 7150 and confirms it is the resistance and BTC is trading below $ 7000. The weekly outlook remains bearish as the price fails to reach a close above the breakdown level.
Bitcoin price today. Source: Coinmarketcap
Weekly Bitcoin price
The weekly chart seems negative.
After breaking below the $ 7400- $ 7600 resistance area, the Bitcoin price failed to reach the close above it for three consecutive weeks. All three weekly candles have long upper wicks.
In addition, Bitcoin prices have dropped below the 50 and 100-week moving averages (MA), which had previously made a bearish cross. The price may face resistance from the 100-week MA.
The weekly outlook shows that the Bitcoin price will drop to the channel’s support level, possibly at its confluence with the small support area at $ 6000, near the end of December.
Source: Trading view
Bitcoin price has been trading in a range of $ 6900- $ 7900 since November 25.
On December 14, the Bitcoin price broke below the small support at $ 7150, before confirming it as resistance as a double peak.
While the RSI does not make any bullish divergences, it is trading at oversold levels. The most likely shift now seems to be falling and the support line is descending followed by an upward move towards resistance.
Source: Trading view
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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