Bitcoin btc
$ usd

Bitcoin Analysis for 2019-12-04 [Premium]

2 mins
Updated by Adam James
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After a very weak breakout from the previous pattern, Bitcoin created a descending triangle and broke down. It is creating a bearish continuation pattern aiming for $7100. The long-term outlook remains bearish.

Bitcoin Price Highlights

  • The Bitcoin price broke down from a descending triangle.
  • There is support at $7100.
  • There is resistance between $7400-$7600.
  • The price was rejected by the 100-week moving average.

Bitcoin in a Descending Triangle

Since the beginning of December, Bitcoin had been trading inside a descending triangle. The price broke down in the early hours of December 4. The breakdown occurred with a bearish engulfing candlestick created with significant volume. The closest support area is found at $7100. Bitcoin Breakdown After the breakdown, the Bitcoin price is making another descending triangle. Besides this being a bearish pattern, it is a continuation of a downward move — making it very likely that the Bitcoin price will again break to the downside. This move would likely take the Bitcoin price to the previously outlined support area at $7100. Bitcoin Descending Triangle

Long-Term Resistance

Looking at the weekly chart provides an extremely bearish sentiment. First, the Bitcoin price broke down below the $7400-$7600 area that had been acting as support since May. Afterward, it fell below the 100-week MA. While it made an attempt at moving higher, it never reached a close and is now again trading below it. Therefore, the price has broken down below a significant support area and validated it as resistance. In the majority of cases, this results in a continued downward movement. If the Bitcoin price breaks down from the current descending channel, it could reach $6000. For now, however, a lower low inside the channel near $6400 seems more likely — if the $7100 support area fails. Weekly Bitcoin For our previous analysis, click here.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.


In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing...