Bitcoin Analysis for 2019-12-31 [Premium Analysis]

Bitcoin Price Highlights

• The Bitcoin price is trading below the 100- and 200-hour moving averages (MAs).
• The price has likely completed a head and shoulders pattern.
• It is possibly trading inside a long-term descending triangle.

Moving Average Breakdown

Since the rally ended near $7600, the BTC price has been decreasing. It fell below the 100- and 200-hour MAs, which are in the process of making a bearish cross. The resistance provided by the short-term MAs could cause the price to decrease to the minor support area at $7150 and possibly below. A breakdown below $7150 could possibly accelerate the rate of decrease.

Longer-Term Bearishness

In the medium-term, Bitcoin is possibly trading inside a descending triangle. While the descending resistance line has been validated several times, the support line has not. The presence of several long upper wicks accentuates the strong selling pressure. Additionally, the price has created a head and shoulders pattern with a slightly ascending neckline. A breakdown from this pattern that travels its entire height would take the price to the bottom of the range near $6600. To conclude, the Bitcoin price is trading inside two bearish patterns. While the long-term outlook remains bullish, both the short- and the medium-term ones are bearish. Good luck and happy trading! For our previous analysis, click here.