![Bitcoin Analysis for 2019-12-16 [Premium]](/_mfes/post/_next/image/?url=https%3A%2F%2Fbeincrypto.com%2Fwp-content%2Fuploads%2F2018%2F12%2Fbic_bitcoin_.jpg&w=1920&q=75)
The Bitcoin price broke down below the minor support at $7150 and validated it as resistance. It is trading inside a descending wedge with the support line being at $7000. The weekly outlook remains bearish since the price failed to reach a close above the breakdown level.
Bitcoin Price Highlights
- The Bitcoin price is trading near the bottom of the range.
- The price has fallen below its 50- and 100-week moving averages.
- Bitcoin is trading inside a descending wedge.
- The weekly outlook is bearish.
Weekly Bitcoin Price Outlook
The weekly chart looks bearish.
After breaking down below the $7400-$7600 resistance area, the Bitcoin price failed to reach a close above it for three weeks in a row. All three weekly candlesticks had long upper wicks.
Additionally, the Bitcoin price has fallen below the 50- and 100-week moving averages (MA), which previously have made a bearish cross. The price is possibly facing resistance from the 100-week MA.
The weekly outlook suggests that the Bitcoin price will fall towards the support line of the channel, possibly at its confluence with the minor support area at $6000, near the end of December.
Trading Range
The Bitcoin price has been trading in a range between $6900-$7900 since November 25, with the exception of a rapid decrease on November 25 — which could not be sustained.
SponsoredOn December 14, the Bitcoin price broke down below the minor support area at $7150 (2), before validating it as resistance in the form of a double top. This movement suggests that the price will fall to the next support area near $7000 (3).
Descending Wedge
The Bitcoin price has been trading inside a descending wedge since reaching a high slightly above $7900 on November 29. Currently, it is trading very close to the support line of this wedge.
While the RSI has not generated any bullish divergence it is trading at oversold levels. The most likely movement now seems a price decrease to the confluence of support at the bottom of the range and descending support line followed by an upward move towards resistance.
The possibility of the upward move unfolding would be increased if the RSI generates bullish divergence.
To conclude, the Bitcoin price is trading inside a descending wedge. It is expected that it will decrease to the support line soon and begin an upward move towards the resistance line.
For our previous analysis, click here.
Midnight