Will Bitcoin Rebound Shortly or Are We in For A Dark December?
Bitcoin has enjoyed a period of untypical stability for the fast several weeks. Its price has been fluctuating between upper resistance levels above $7,500 and bottom support levels of $7,000. This lack of volatility is a bit odd for Bitcoin which is known for wild fluctuations.
It seems like this period of stability might be over as Bitcoin has dipped below the $7000 support levels. The original cryptocurrency is now trading at $6,918 and could temporarily be heading even lower. This is the 1st time Bitcoin had dropped below $7000 in December of this year.
Nearly all altcoins are following Bitcoin's drop to an even greater extent. Many have reported losses typically ranging between 4%-7% in the last 24 hours as opposed to Bitcoin's -2.5% loss.
Decembers are known to be a wild time for Bitcoin. In 2017, Bitcoin reached its all-time high of just below $20,000. Just a year later and Bitcoin was trading at roughly $3,500 in 2018. Currently it seems that Bitcoin might be heading lower for December 2019.
One must keep in mind however that Bitcoin had a similar dip last month on November 25th. Bitcoin dropped from $7,100 to $6,600 only to recover back in less than 24 hours.
To check the possible depths of this drop, a look at the charts is necessary.
Bitcoin Weekly Review
It seems that we have a historic moment for Bitcoin. It never went below EMA 200 on its weekly chart. We are not far from this point. This is going to create Second Leg pattern on 1W chart.
What it means for us? It means we need to be prepared for Bitcoin to take off soon.
Right now, Bitcoin is doing one of its best healthiest corrections which could include drops to $6,500. So, we expect 1D MACD will turn green and whole market will just explode. RSI is very carefully keeping its bullish position
All traders around the world are following Directional Trading index. And it shows us that bearish momentum is running out of its potential.
Please trade with care and follow our updates
Â A special thanks to Senin for his Technical Analysis assistance
Written by Jonathan Ganor
Writer & cryptocurrency aficionado