Bitcoin Analysis for 2019-12-06 [Premium]

Bitcoin Price Highlights

• The Bitcoin price is trading inside a descending channel.
• There is support at $7000 and resistance at $7900.
• The price is struggling to move above the 200-hour MA.
• Lower time-frames reveal a bearish divergence.

Bitcoin in a Descending Channel

The Bitcoin price has been trading inside a descending channel since reaching a high of $7918 on November 29. Currently, it is trading right at the resistance line of the channel — which coincides with the 200-hour moving average (MA). Additionally, the Bitcoin price is likely trading inside a range between $7000-$7900. The support area coincides with the support line of the channel, while a breakout above the resistance line and the 200-hour MA would likely take the price to $7900. Lower time-frames support his development. The Bitcoin price has created a probable triple top combined with a slight bearish divergence in both the RSI & the MACD. Since lower time-frames are supporting a development visible in higher ones, this supports the possibility that the Bitcoin price will decrease towards the support line.

Price Rejection

The daily chart still looks bearish. The Bitcoin price was rejected twice by the $7900 resistance area and the 0.5 Fib level of the previous decrease. The second time, the price created a long upper wick and finished the day with a bearish close. While yesterday’s candle was bullish, it was handily contained within the body of the previous bearish candle. To conclude, the Bitcoin price has reached the resistance line of the channel and is expected to head down towards the support line near $7000. For our previous analysis, click here.

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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.