Bitcoin [BTC]: Leading Analysts Peg for $5k Bottom with Resistances for a Bullish Scenario

By Nivesh Rustgi
Published December 6, 2019 Updated December 6, 2019
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Bitcoin [BTC]: Leading Analysts Peg for $5k Bottom with Resistances for a Bullish Scenario

By Nivesh Rustgi
Published December 6, 2019 Updated December 6, 2019

Bitcoin [BTC] price shows strong resistance to the bears rejecting a drop below $7150. The consolidation and strength of the buyers caused another day of short liquidations. According to Datamish, about $13.23 million worth of shorts were liquidated compared to $5.1 million longs.

The price of Bitcoin [BTC] at 2: 45 hours UTC on 6th December 2019 is $7390. It is trading at par on a daily scale. However, it touched a high of $7525 yesterday.

btcusd 4 hour chart
BTC/USD 4-Hour Chart on Bitstamp (TradingView)

On the weekly chart, there is a confluence of the 100-period and 50-period moving average at $7315-$7350 which is inclined towards a bullish cross-over.

On the 4-hour chart as well, there is a confluence of the 100-period and 50-period moving average which is acting as resistance at $7420.

According to Tone Vays, the oscillators report on the daily chart are bullish. However, a Bitcoin just formed a higher low at $7780 and a close below $7410 today could continue the bearish movements according to sequential. Nevertheless, it is bullish above it.

How Important is the Bottom at $6500?

Bitcoin [BTC] recorded a bottom at $6515, which was coincidentally was the support for the “multi-year bullish” trendline. According to leading chart analyst, Peter Brandt‘s report, this could be a bullish scenario as Bitcoin begins another parabolic phase.

btcusd
BTC/USD Weekly Chart on Bitstamp (TradingView)

However, the previous parabolic rise to $14,000 has not met with its correction yet. Hence, this could lead to longer periods of bear and consolidation. The target for 80% correction of the parabolic run is at $5340.

Moreover, Tone Vays was bearish in the near long term as well. His weekly chart analysis on RSI and MACD projects a target of about $5000.

btc weekly rsi tradingview
Bitcoin [BTC] Weekly RSI (TradingView)
Furthermore, he also noted that the bear market of 2018 did not conclude in its entirety as well. The run-up to $14,000 is not a sustainable bull run. A higher-high on the weekly RSI would signal a reversal. Until then, it is in a bearish trend.

At the moment, Bitcoin [BTC] faces a long period of bears and consolidation with a break below $6500. On the other hand, it is also building up the possibility of a new parabolic run with $10,000 as a strong technical and psychological resistance.

Where do you think the price is headed $5000 or another parabola? 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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