The Bitcoin price has failed to reach a close above the $7800 resistance area. It is currently holding on to a minor support area, a breakdown below which could take it below $7000.A big portion of the bullish sentiment for Bitcoin evaporated with Monday night’s failed breakout. But, despite the decrease, positive news keeps piling up. Bakkt recently announced the release of two new financial products: Bitcoin monthly options and Bitcoin cash-settled futures. The monthly options are the first CFTC-regulated options for Bitcoin which use as a benchmark the original Bakkt Bitcoin Monthly Futures. The second, Bitcoin cash-settled futures, will act as an alternative to investors who are unable to participate in the physically-delivered Bitcoin futures. The novelties are aiding in Bakkt’s quest to gain momentum heading into 2020, where it has planned new trading products, expanded custody services, a consumer payments app. However, the market has not reacted positively to the news. On the contrary, Bitcoin trader and analyst @nebraskangooner suggested that there is not much to be bullish about in the current Bitcoin price structure. He outlined a movement in which after a breakdown, we just retested and validated the previous resistance area.
For future movement, he states that if $6900 does not hold, we will likely head to $6300. The $6000 area is very likely to provide a bounce. Let’s analyze these claims individually and see if there is any merit to them.
#bitcoin— NebraskanGooner📈 (@nebraskangooner) December 9, 2019
I'm not seeing much to be bullish about and I won't rule out $4200 in the long term
If $6.9k area is unable to hold then $6.3k area will be visited. $6k support could fall right through as it didnt provide resistance on the way up, but seems more likely to bounce there pic.twitter.com/KWkQjAx9qy
Resistance TestLooking at the daily chart, we can see that the price was rejected twice by the $7800-$7900 resistance area, which also coincides with the 0.5 fib level. The December 4 candle was especially bearish, characterized by a very long upper wick and a bearish price close. Also, while the price moved above the 10- and 20-day moving averages (MA) for a short period of time, it is back to trading below and facing resistance from them. As for its current pattern, see the price is trading inside a symmetrical triangle, currently being at the support line. The dashed lines represent the limits of the trading ranges. The red line is the previous resistance which is likely acting as support. $7100 can provide minor support, while $6900 is the range low that could initiate a bounce.
Bitcoin Future MovementIf the price breaks down below $6900, it is expected that it will continue towards the descending support line of the channel which at the moment is at $6300. If it gets there, we believe it would do so by the end of the month, when the support line coincides with the minor $6000 support area. To conclude, the Bitcoin price has retested the previous support area turned resistance and began to decrease. If it is unable to reclaim the area, it will probably decrease towards $7100 and $6900. A future decrease towards the low $6000s is not ruled out.
Images are courtesy of Twitter, Shutterstock, TradingView.
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.