As part of its current mid-term downtrend, Bitcoin could be headed toward its 200-week moving average, a level that has been a major historical bottom.
Since hitting its 2019 high of approximately $13,890, Bitcoin has seen lower highs indicative of a downward trend, at least in the mid-term.
Back in April, Bitcoin's price tallied significant price action between $5,760 and $4,890, indicating a zone of future support.
The 200-week MA has been a major level of support in Bitcoin's history, serving as the bottom of the asset's last major bear market in 2018 and early 2019.Since 2014, Bitcoin has bounced off its 200-week MA several times, never decisively closing below it and holding it as trend resistance, according to Brave New Coin's Bitcoin Liquid Index chart data.
On a shorter time frame, several candles ago, Bitcoin bounced off its cloud bottom as support before testing its cloud top as subsequent resistance.
The $6,000 to $7,000 resistance zone also melted quite easily earlier in 2019 during Bitcoin's parabolic move up, so there is always a chance the zone might not hold as support if Bitcoin falls further than its recent swing low near $6,500.
Bullish scenarioOn the bullish side, Bitcoin had a fairly decisive bounce near $6,500.
If the asset can break above its current 4-hour Ichimoku Cloud and hold it as support, Bitcoin may be able to build some steam for further momentum upward.
Bitcoin has the ability to randomly change all current sentiment and bias, as seen by its historic 24-hour pump of 42% in October, although such a move did not ultimately change Bitcoin's mid-term trend.
Bitcoin has also proven itself as volatile for the month of December, with many years yielding positive price action.
Bitcoin Price Shifts Toward Key Moving Average as Bears Target $5,000
Published on Dec 2, 2019
by Cointele | Published on Coinage
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