Bitcoin Price Analysis: BTC/USD Facing Darkness Before Dawn, Focus Stays On $8k

By John Isige
Published December 16, 2019 Updated December 16, 2019
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Bitcoin Price Analysis: BTC/USD Facing Darkness Before Dawn, Focus Stays On $8k

By John Isige
Published December 16, 2019 Updated December 16, 2019
  • Bitcoin price trades lethargically under $7,100 and defending $7,000 support.
  • The bulls refuse to give up home, especially with the formation of a falling wedge pattern.

The cryptocurrency market continues to take a breather after a rough couple of weeks. Bitcoin tested $6,500 support in November before recovering slightly towards $8,000. A high formed at $7,872 put a stop to the momentum has Bitcoin bears took over. In the last couple of weeks, Bitcoin has been lethargic between $7,000 and $7,600. The support at $7,500 has been put in jeopardy several.

Consequently, Bitcoin is trading marginally below $7,100 after defending $7,000 support. Capping the immediate upside is the 38.2% Fib retracement level taken between the last swing high of $13,834 to a swing low of $3,147.

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Moreover, the price is dancing below the 50-day Exponential Moving Average as well as the 100 EMA. In other words, the bulls will have to work harder to break the resistance at the 50 EMA, currently at $7,809. On the brighter side, trading above this zone could push Bitcoin above the crucial hurdle at $8,000. Marginally, above $8,000, the EMA 100 is in line to stop the bulls from extending the action towards $9,000.

The prevailing sideways trend is supported by the Relative Strength Index (RSI), lethargic at 36. Movement northwards has been capped under 50. If the RSI continues with the ranging trend, there is a possibility Bitcoin will push the sideways trading into most of the sessions this week.

The formation of a falling wedge pattern suggests that a breakout is imminent. However, the pattern resistance must first be broken, and the bulls ensure that they take advantage of the renewed momentum.

Bitcoin Key Levels

Spot rate: $7,067

Relative change: -45

Percentage change: -0.63%

Trend: Bearish

RSI: Sluggish with the upside capped under 50.

Volume: Low

Volatility: Low

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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
John Isige
1154 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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