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.
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.
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.
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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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