Bitcoin (BTC) Price Analysis – Bitcoin Returns To Weekly Trading Zone After Fakeout, What’s Next?

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5 December 2019 | Updated: 5 December 2019

Yesterday, Bitcoin’s saw a sudden price increase to $7900 (Bitfinex) after trading as low as $7100. The sudden surge in volatility was due to a significant volume in the market which recorded about +10% gains within an hour. After opening at $7200 today, Bitcoin is now trading back around $7300 zones. Currently, BTC dominance has increased to 67%. That could be an indicator of a potential increase in price.

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

Key resistance levels: $7600, $7900
Key support levels: $7000, $6800

The daily chart for Bitcoin is showing a downward trend as sellers appeared to be holding $7900 resistance which is the last defence line for the short-term bears. After spiking upward yesterday, BTC closed with an evening star candle to indicate a coming sell-off. Though, the bearish signal would be valid if the price closes below $7000 support today. The market may further slip to $6800 support in future.

BTCUSD, Daily Chart – December 5

Inversely, reclaiming the $76000 resistance could allow Bitcoin to retest $7900 once more. While the Bitcoin is still trading well above the RSI oversold level, the price is currently indecisive on the MACD indicator. The market may reach the channel’s upper boundary if the technical indicators keep climbing.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

The last 24-hours surge fakeout on the descending wedge was due to significant volatility. As we can see on the hourly chart, Bitcoin is now trading back inside the wedge. Currently, the price of BTC is testing the channel’s resistance at $7362. Even though we saw a false break yesterday, the market is reaching a tight zone on the wedge formation. Nevertheless, a breakout is still brewing!

BTCUSD-Hourly-Chart-December-5

 

 

Meanwhile, the technical RSI and MACD indicators are quite positive at the moment. If a wedge break-up occurs, the market might resurge to $7570 and $7900 resistance from above. For a down surge, Bitcoin could slip to $7200 and $7000 support. For now, Bitcoin is trading in a fragile zone. We might need to wait for a clear direction before initiating an entry.

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Michael Fasogbon

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.