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Bitcoin Analysis for 2019-12-17 [Premium]

2 mins
Updated by Adam James
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The Bitcoin price broke down below $7000 and is trading at the bottom of the range at $6900. It is also trading near the end of the current descending wedge, suggesting that a breakout will occur within the next few days.

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. Bitcoin Bullish Divergence

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. Bitcoin Descending Wedge 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. Fib Wedge 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.
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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. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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