Bitcoin Analysis for 2019-12-17 [Premium]

Bitcoin Price Highlights

• The Bitcoin price has reached the bottom of its range.
• It is trading inside a descending wedge.
• The price is trading at the 0.786 Fib level.
• There is a slight bullish divergence developing in the RSI.

Bitcoin’s Trading Range

After making a double top, the Bitcoin price fell below the $7000 support area — amid a bearish engulfing candlestick with very significant volume. It is currently trading at the bottom of the range at $6900. We have slightly adjusted the minor support and resistance areas to account for the recent price movement. There is a bullish divergence developing in the RSI, albeit only visible up to the two-hour time-frame and only present in the RSI.

Descending Wedge

The Bitcoin price is still trading inside a descending wedge, however, the support line is adjusted to account for the recent price decrease. Bitcoin is approaching the end of the wedge and we should see a decisive move within the next few days. The support line is sloped so it does not go lower than $6800. Using a Fibonacci retracement from the absolute bottom, we can see that the price is at the 0.786 Fib level of the entire upward move. This makes it a likely place for the initiation of a reversal. It is possible that the price decreases a bit more inside the confines of the wedge, near the 0.88 level at $6775. However, it seems that we are close to reaching a bottom and a breakdown should soon follow. Afterwards, the Bitcoin price is likely to find resistance near the same minor support areas, firstly at $7150 and $7350. To conclude, the Bitcoin price is trading near the bottom of its trading range and descending wedge. A breakout should occur within the next few days, causing the price to increase above $7000. Good luck and happy trading! For our previous analysis, click here.