![Bitcoin Analysis for 2019-12-27 [Premium Analysis]](https://beincrypto.com/wp-content/uploads/2019/07/bic_BTC_hashrate.jpg.optimal.jpg)
The Bitcoin price broke out from a descending channel and reached a high of $7250 before decreasing. It has created a head and shoulders pattern, a breakdown from which could take it to $6400.
Bitcoin Price Highlights
- The Bitcoin price broke out from a descending channel.
- It has possibly created a head and shoulders pattern.
- A breakdown from this pattern would take it to $6400.
- The price has failed to move above the previous breakdown level for the fifth time.
Previous Bitcoin Breakout
The Bitcoin price broke out from a descending channel yesterday. The breakout transpired with significant volume. Afterward, the BTC price returned to validate the previous resistance line. While the price has made a double bottom near $7200, combined with long lower wicks, there is no bullish divergence to suggest that the price will move upward. There is a minor support area near $7150.
Head and Shoulders
The Bitcoin price seems to be following a longer-term bearish pattern. It has likely created a head and shoulder pattern, with an ascending neckline. A breakdown from this pattern that travels its full height would likely take the price to $6700, inside a support area. This makes sense since there is a lack of support below $7000, due to the rapid rate of the previous price increase.
Longer-Term
Looking at this H&S in the daily time-frame, we can see the strong resistance above the current price, both in the form of previous resistance and current moving averages (MAs). Also, the possible three-day pattern outlined in yesterday’s analysis has been invalidated — since, instead of creating a bullish engulfing candlestick, the Bitcoin price created a doji with a long upper wick.
The weekly outlook gives a similar view. The Bitcoin price has failed to move above the previous resistance level for the fifth time.
Currently, it has fallen back below the 50- and 100-week MAs. The breakdown from the H&S would take it to the previous wick lows and near the descending support line.
To conclude, the Bitcoin price has created a head and shoulders pattern. A breakdown from this pattern would take the price near $6400.
Good luck and happy trading! For our previous analysis, click here.
Top crypto projects in the US | April 2024
Trusted
Disclaimer
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 Conditions, Privacy Policy, and Disclaimers have been updated.
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)
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)
READ FULL BIO
Sponsored
Sponsored