Bitcoin [BTC] Price Falls Below Bullish Resistance to $7200 as Fear Keeps Growing

By Nivesh Rustgi
Published December 31, 2019 Updated July 24, 2020
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Bitcoin [BTC] Price Falls Below Bullish Resistance to $7200 as Fear Keeps Growing

By Nivesh Rustgi
Published December 31, 2019 Updated July 24, 2020

Bitcoin [BTC] price fell below resistance around $7300 as the price dipped to a low at $7199.

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Bitcoin trader, CryptoFibonacci, tweeted on the resistance and support around the falling the wedge. He tweeted,

That 38.2 Fib retrace is the first area to clear for bulls. If it does not move up soon, bulls will get a chance at lower prices. And, if it breaks those recent lows, then 5400 comes into play. #BTC #bitcoin

The resistance for the 38.2 Fib level is at $7870. The 100-period (longer) moving average is crossing over the 50-period (shorter) which is a bearish cross. Despite the bullish outlook, the falling wedge bearish trend-lines are still intact.

The 200-Day Weekly Moving Average on Bitcoin [BTC] is around $5150. In case of a dip, the probability of testing the levels increases.

btcusd 1-day chart
BTC/USD 1-Day Chart on Bitstamp (TradingView)

The futures market sentiments, nonetheless, seems to be bullish as the funding rate on BitMEX and Okex is positive. The position comparison on Huobi also reveals that about 52% traders are long.

bitcoin futures volume
Bitcoin [BTC] Futures Aggregated Volume (Source)
The volume of the futures market is falling, while the Open Interest (OI) remains low as well. The small bullish gap on the CME around $7430 from $7230 has been filled. It is a positive signal for continued bullish move.

The price of Bitcoin [BTC] at 4: 20 hours UTC on 31st December 2019 is $7220. With little less than 20 hours to the yearly closing, around $7200, the annual gain in BTC is around 95%. Nevertheless, the current market remains to be in a bearish trend.

The fear and greed index indicates a higher degree of fear around 40. On the oscillator front, the CMF is still negative, while the MACD is postive on a daily scale. On a weekly scale, both the indicators are negative indicating a bearish moment.

The awaited “bullish reversal” looks to be around the corner. However, within the current range, there is are a lot of resistance above before the bulls can be confirmed.

Do you think new year will rekindle the bullish sentiments in the market? Please share your views with us. 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
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

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