Bitcoin [BTC] weekly close was at $7115; 5.4% lower from opening above $7500.
The weekly close 100 and 50-period moving average does seem to be a concern for the bulls. TraderSZ, a crypto popular crypto charting tweeted,
If we get bearish weekly close ideally below 7300, expecting a big downside expansion next week towards 6k. Invalidation on move above 7350. #
The price of Bitcoin at 4: 30 hours UTC on 16th December 2019 is $7040.
Futures Market Update
The bearish Gap recorded on CME exchange was about $106 dollars.
BitMEX funding rate is positive indicating a long interest at the moment. The long/short ratio on Okex as well is fairly inclined towards the bulls at 1.25. Moreover, on Okex the top traders are long as well with the exchange reporting a sharp increase in open interests in the past 24 hours.
Furthermore, on BitFinex the ratio breached its ATH with more than 43000 long contracts compared to around 7000 BTC short orders.
Hence, the market seems to be looking for a reversal at support above $7000. Nevertheless, the bulls face a lot of resistance starting at the range resistance around $7400.
… Overall bias is still bearish but not discounting a return to the mean before downside continuation. Currently straddling the range with 7k long/7.4 short entries respectively. Watch for a break in MS. #
Hence, while a relief bounce might be around the corner, the short and medium-term outlook seems to be bearish at the moment. However, a break above the falling wedge pattern and resistance around $7800, could well lead the price above $8000.
Moreover, even during previous bear actions, price only recorded bearish wicks (for a short period of time). If the buyers continue to exhaust the bears above the $6900, bull action would resume again after accumulation.
Do you think the price will be able to hold above $7000? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com