Bitcoin (BTC) Price Analysis – Amidst Bearishnes, Bitcoin is Captured in a Tight Range – Incoming Surge?

Bitcoin (BTC) Price Analysis – Amidst Bearishnes, Bitcoin is Captured in a Tight Range – Incoming Surge?

Since November 25 rebound, the $7000 support has continued to shield Bitcoin from falling, although the support is likely to collapse if the price keeps testing the area. Meanwhile, BTC is facing a critical resistance at $7200 for some days now. Considering the tight ranges of $7000 – $7200, Bitcoin’s price is fragile. Anytime from now, we should expect a volatility explosion to occur.

Bitcoin (BTC) Price Analysis: Weekly Chart – Bearish

Key resistance levels: $7600, $8000, $8400
Key support levels: $7000, $6600, $6000

As shown on the weekly chart, the six-month bearish trend may end soon if Bitcoin can find a bottom on the November 2018 drop level on the white horizontal support zones. Before the price can drops to the white zone ($6000), Bitcoin needs to break the $6600 support that was established on November 25.

BTCUSD, Weekly Chart – December 16

A look at the technical indicator suggested that Bitcoin is slowly locating the lower boundary of the RSI. If the market can produce support around the mentioned support zones along with the RSI 30 level; the price of Bitcoin is expected to bounce back to $7600 and $8400 resistance. The MACD is currently on the downside but it may regain strength if the zero levels can provide support.

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

The daily chart for Bitcoin shows that the bearish action is still very much dominant in the market. Following the late October bearish continuation from channel’s upper boundary at $10480; Bitcoin’s price is now trading at $7100 at the moment. The selling pressure could extend to the white horizontal support zones at $6000. Though, the $7000 and $6600 support are key important levels for the bears.

BTCUSD, Daily Chart – December 16

However, if these mentioned supports keep holding price actions well, Bitcoin is likely to correct to $7600 and $8000 resistance before breaking to $8400. However, a short-term break at $7200 would confirm a bullish swing for Bitcoin. Currently, the sellers are gaining control of the market. Technically, the RSI and MACD are revealed in a downward position- showing that the bearish bias is dominant.

BITCOIN SELL SIGNAL

Sell Entry: $7115
TP: $7050
SL: $7200

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Author : Michael Fasogbon

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Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.