Bitcoin [BTC] Price begins the first two days of the year on a bearish note price breaks below $7150 area of support.
The price of Bitcoin [BTC] at 4: 00 hours UTC on 2nd January 2020 is $7095. It is trading 1.2% lower on a daily scale.
It is currently testing the bottom of the demand and supply range. Derivatives trader and chart analyst, Zoran Kole notes,
$BTC Update: Stick with your HTF bias until invalidated. 1 month later and not much has changed. Still in 7.4 swing short and added a new scalp at 7211. Looks like we visit 68xx next to gauge demand. #crypto
The higher time frame resistance levels are intact around $7,768-$7,870. Moreover, the 50-Day Moving Average which acts the immediate next resistance is at $7420.
Another prominent derivative’s trader Tone Vays also predicted bearish tidings on higher time frames. He said,
I am expecting Bitcoin [BTC] to spent the majority of the year (2020) below $10,000.
Vays’ bearish outlook is based on the sequential analysis on the monthly and weekly scale. The upper resistance or stop limit to change his bearish outlook is at $10,000 as well. According to him, the price faces a lot of resistance until then.
Critical Moving Averages
Moreover, last week price broke below the 50-period moving average on at $7500. This week the price is testing the support from the 100-period moving average on the weekly chart at $7195.
A close below the 100-period MA could signal another downfall in price for the asset. The support below the 100-Week MA at 200-Period MA is at $5090.
Latent Trend Analyses
There has been a lack of particular trend in Bitcoin [BTC] apart from the falling wedge it has been unable to break. Nevertheless, as reported earlier as well, some analysts are finding analogy with the classical Wyckoff Accumulation pattern. Most recently, another trader, Sawcruhteez, tweeted,
$BTC 12h fractal points to a $6,600 retest in the first week of January, which would match up very nicely with the Wyckoff Accumulation pattern that is starting to form. pic.twitter.com/VdBLQmGBRN
— Financial Survivalism (@Sawcruhteez) December 31, 2019
Nevertheless, as the bearish price action and arguments seems to be growing, the fear of liquidations in order will also rise. Currently, the futures market still seems to be uncertain, however, there are positions for both side.
As Bitcoin continues to hold above the trend-line on the logarithmic scale, the over-all bullish argument is likely to remain bullish.
Where do you think the price of Bitcoin [BTC] will move next? Please share your views with us.
The post Bitcoin [BTC] Price Breaks Below Key Indicator – Analysts Explain PA on Higher Time Frames appeared first on Coingape.
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