- Bitcoin (BTC) drops to intraday lows of $6,440 USD as selloff stretches to the third day.
- BTC/USD to show clear direction early next year, analyst says
- Is a bullish divergence on the cards in 2020?
The total cryptocurrency market capitalization dipped below the $180 billion mark for the first time since May this year as the selloff persists. Bitcoin, the top cryptocurrency lost 5% in the past 24 hours to trade at $6,669 USD across major exchanges, as at time of writing. The fall in BTC’s price affected the wider market as top altcoins fell heavily.
In the past 48 hours, the total market capitalization has dropped over $14 billion as top altcoins including Ethereum, XRP, Litecoin and Bitcoin Cash lost 6%, 7%, 3% and 8% in the past 24 hours.
BTC/USD drops towards support at $6,400 region
A look at the higher time frames shows a possible move lower towards the $5,000 USD for Bitcoin as the volumes on the pair remain low. Falling through the bearish channel, BTC/USD bears target the support level below the $6,000 mark as selling pressure intensifies on the pair. According to PickACrypto, a cryptocurrency trading analyst, the price pattern will clearly form in early January as a breakout from the falling wedge ensues.
Although I've been all about shorting $BTC for months now, it's very hard to ignore the clear formation here.
We will get a clear decision in January. Not much room left.
I closed my short up at $6780. I'm flat until we get a breakout either way.
Don't get chopped! pic.twitter.com/Jtyj7syyd6
— Pick A Crypto | FA & TA | Habitual Alt Trader ? (@PickACrypto) December 18, 2019
A breakout below the support level spells doom for BTC bulls as price and expect the priceto drop towards the $5,500 USD support levels. Furthermore, with the weekly RSI bouncing off the oversold region bar, the current short spike in BTC’s price may be a bull trap.
A clear (bullish) direction?
While the BTC/USD buyers have had a rough period in the past two months or so, since the October uptrend caused by Xi’s comments, Scott Melker, a crypto trader and analyst, believes an upcoming bull run is on the cards with lower timeframe chart indicators showing signals of exhausted sellers.
(1) Trading account now fully deployed in Bitcoin, average entry $6,550. Potential bullish divergences on every time frame below weekly with oversold RSI daily and below. Potential SFP below 2 previous swing lows (blue lines). pic.twitter.com/Ld3NVL3W3v
— The Wolf Of All Streets (@scottmelker) December 18, 2019
In the daily (& hourly) charts, the relative strength index shows a highly oversold market which points to a possible bullish divergence. A push above the $7,700 USD resistance level will be the key target for bulls with a potential bullish engulfing candle forming on the lower bearish channel support on the 4H candle chart.
Can bulls take control of the market come 2020?
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.