Bitcoin in a Descending ChannelThe Bitcoin price has been trading inside a descending channel since reaching a high on June 24. It reached the support line on November 21 — creating a long lower wick. The ensuing decrease caused it to fall to the support line once more on November 25. Another increase ensued and the Bitcoin price is currently in the process of creating a bullish reversal candlestick. Looking at lower time-frames, we can see a strong bullish divergence in the RSI. Additionally, the Bitcoin price is in the process of creating a morning star pattern. A price close above the previous bearish candlestick’s open at $7300 would likely confirm the reversal.
Resistance AreasIn the short-term, the main resistance areas are at $7400 and $7600. It is likely that the Bitcoin price retraces slightly once it reaches them. However, a daily close above the second resistance area would confirm the previous pattern and the reversal scenario. To conclude, after a long and rapid decrease, the Bitcoin price seems to have begun a reversal. While this trend is not yet confirmed, it occurred at a likely reversal area and is supported by technical indicators.
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.
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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.