While we do not have the same tool, we can look at different indicators and analyze the Bitcoin price movement to see if that really is likely.
Yikes. I’m taking the hint this time guys.. $BTC is done for a while. This squashes some bullish sentiment i was feeling yesterday ….the purpose and reason I built this tool was to eliminate my emotion in analysis and it’s pretty clear I need to listen to it.— Parabolic Thies ♔ (@KingThies) December 1, 2019
Short the corn. pic.twitter.com/AiVLec0sUs
Bitcoin in a Descending ChannelLooking at the daily chart, we can see that BTC is trading inside a descending channel. It bounced on the support line on November 25 and has been increasing since. This movement solidified strong support above $7000. The next support area is found in the low $5000s. If the Bitcoin price does not break down from the pattern but decreases at its rate, it will reach it in February 2020. Also, a bearish cross between the 100- and 200-day moving averages has transpired. This suggests that the Bitcoin price is likely to continue heading lower. A bullish cross between the same MAs preceded the entire upward move.
Long-Term ChartLooking at Bitcoin’s price since its inception, we can see that it is trading inside both ascending resistance and support lines. Both in the 2014 correction and the current one, the Bitcoin price made a bottom at the convergence between the 200-week MA and the support line. Both times, it moved above the 100-week MA shortly after and accelerated its rate of increase. However, the Bitcoin price again has fallen below this MA. Additionally, the price could not close above the previous support area and has now validated it as resistance. Therefore, we could definitely see another leg downward with the price possibly bouncing at the convergence of support between the channel, long-standing support line, and the 200-week MA. To conclude, the long-term Bitcoin chart looks bearish. We could potentially see a move towards $6000 and possibly slightly lower.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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.