Bitcoin Set to Enter Disbelief Phase

Bitcoin price performed as expected over the past week as 8% was shaved off its price of $7,571.

Currently, Bitcoin has a distinct lack of bullish indicators that offer any hope of a short term reversal and even John Bollinger, the founder of the Bollinger Bands indicator tweeted out this somewhat cryptic tweet on Dec. 13.

Is it likely that the Bitcoin price will repeat the same move as it did in late October?

As 2019 draws to a close, it looks as if Bitcoin holders will endure a lot of pain.

The last time this happened, Bitcoin lost 60% of its USD value, as it fell from $8,500 in July 2018 to a low in the region of $3,300 in February 2019.A 60% drop from today's value of $7,100 would land the digital asset around $2,840.

The daily RSI is currently around 33.80 and as can be seen in the image above, Bitcoin previously did not experience a reversal until somewhere between the mid-20s and mid-teens in recent months.

On the monthly chart, Bitcoin has always reversed around 42.What all three of these RSI charts hint to is that Bitcoin is likely to fall further before experiencing a bullish reversal.

Bitcoin price is sitting on the Bollinger Band support around $7,100 and if the bulls were to take control, the key resistance levels would be the moving average at $7,320 then $7,600 for a breakout.

Bearish scenarioWe're most certainly in bear country and Bitcoin needs to hold $7,040 before opening up $6,900 as the last key support level until somewhere in the $5,000 region.

As things stand, the downside could be as low as $2,800 over the coming months but the longer Bitcoin stays in a sideways channel, the higher this figure will become.