In light of these developments, full-time trader @cryptoMichNL stated that there are two possible scenarios for the Bitcoin price:💵 2,800,000 #USDC (2,809,588 USD) minted at USDC Treasury
— Whale Alert (@whale_alert) December 11, 2019
Tx: https://t.co/juPvMGZdJ7
- The current support area at $7100 will hold the price and we will begin moving upward towards the range high at $7600.
- The support will not hold and we will decrease towards $6900 and, possibly, head lower towards the low $6000s.
Which one is more likely to occur? Continue reading below if you are interested in finding out.$BTC #BITCOIN
— Michaël van de Poppe (@CryptoMichNL) December 12, 2019
Boring & fragile markets here.
Either of the two.
1) If green holds, I'd want to see a break up during the day and then we can start aiming for the range highs again.
2) If not, then acceleration will likely occur again and then I'm aiming at a significant drop. pic.twitter.com/uGYfPQ2HqS
Bitcoin’s Trading Range
The Bitcoin price is trading inside a range between $6900-$7600 — with an upper limit of $7900 that was reached but could not be sustained. Currently, the price is trading inside the minor range between $7150-$7350, marked with (4) and (3). In the first scenario, the Bitcoin price will break out above (3) and head towards (2) at $7600. Depending on the strength of the breakout, the price an also reach (1) at $7900. All this movement can still be considered a retracement in response to the prior downward move. A breakout above $7900 would constitute a movement outside of the trading range and the possible beginning of the new upward move. In the second scenario, (4) fails to hold and we head towards (5) and $6900 and possibly lower. If we continue lower, the weekly chart gives us our possible targets. The first support is found at $6600 at the wick low of November 25. Afterward, the price is likely to find support at $6000, at a confluence of the descending support line of the channel and previous support area. However, this movement would have massive bearish implications. It would validate the resistance area at $7600, in which the price has not been able to reach a weekly close above, and cause the price to move below the 50- and 100-week moving averages (MA) — which have just made a bullish cross.Verdict
The short-term movement suggests the first scenario is more likely, even if the Bitcoin price might not get all the way to $7600. The Bitcoin price has created a descending wedge, out of which it is currently trying to break out. Additionally, there is a strong bullish divergence developing — suggesting that the breakout will occur. If so, the price should reach $7350 and possibly move higher. To conclude, the Bitcoin price is resting at a strong support of $7100. In the short-term, we are expecting it to move towards the resistance areas at $7350 and, possibly, $7600. However, a drop below $7000 should eventually occur.Disclaimer
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