Bitcoin Price Analysis – Is Bitcoin Preparing to End The Year on a Bullish Note as We Approach 2020?

Key takeaways

• Bitcoin still in downtrend, found support at $6,423
• $7,700 still strong resistance
• Rising RSI, $55 million freshly minted Tether, and increasing BTC dominance should help Bitcoin recovery

*Price at the time of publication

Bitcoin has been on an absolute rollercoaster over the past few days. During mid-December, the cryptocurrency dipped lower to create a fresh low beneath the $6,569 level at the $6,423 level. This fresh low created much panic within the market, causing the majority of the altcoin market to capitulate.

However, Bitcoin managed to rebound from this fresh low and has now risen by around 8% over the past week to climb back above the $7,000 level to reach the current price of $7,400. This puts Bitcoin in a slightly better position as everybody wraps up for the holidays.

Bitcoin now has a market cap valuation of around $134 billion as the BTC Dominance increases toward the 69% level.

Bitcoin Price Analysis

What has been going on?

Taking a look at the daily chart above we can see that Bitcoin had found solid support at the $6,423 level, provided by the downside 1.272 Fibonacci Extension level. After reaching this support, the cryptocurrency bounced higher as it surged above the acute descending wedge that we had been tracking.

It continued to rise further higher from here and even managed to reach the resistance at $7,686 before rolling over again. This level of resistance is provided by the short term bearish .382 Fibonacci Retracement level (drawn in red).

Bitcoin price short term prediction: Bearish/Neutral

Over the long term, Bitcoin remains in the bearish downtrend it has been trading within since September 2019. However, the rebound has allowed Bitcoin to return to a neutral trading condition within the short term. Bitcoin must break above the December high to create the making of a bullish trend. Alternatively, if BItcoin was to drop beneath the $6,423 support level then the bearish trend would resume as Bitcoin continues toward $6,000.

If the sellers step back in and push the market lower, we can expect immediate support to be located at $7,123 and $7,000. Beneath $7,000, additional support can be found at $6,790, $6,569, $6,500, and $6,423.

What If The Bulls Regroup?

On the other hand, if the buyers continue with their newly found momentum, we can expect immediate resistance above the market to be located at $7,500 and $7,686. Above this, higher resistance lies at $7,915, $8,000, and $8,051 (bearish .5 Fibonacci Retracement level). Beyond this, resistance can be found at $8,265 (200-days EMA) and $8,416 (bearish .618 Fib Retracement).

Alternative Analysis

In this analysis, sunny decree talks about a bullish divergence on the RSI despite the falling prices. The same thing occurred back in October when BTC price was making lower lows, but the RSI kept rising before the October 25 biggest daily gain in its history. There’s also the injection of freshly minted 65 million Tether and the rising BTC dominance.

Bitcoin still not dead

Bloomberg’s and @TheStalwart‘s 2018 greatest bubbles comparison. #Bitcoin was predicted to die in a couple of years following the $20k peak, yet here we are – $BTC is not dead after all. https://t.co/ugG6SXkb4U

— CoinCodex (@CoinCodex) December 24, 2019

Here’s a comparison of the greatest bubbles in history, posted by Bloomberg. Bloomberg TV’s host Joe Weisenthal predicted that Bitcoin price would go to near-zero levels. Luckily, Bitcoin is alive and well.