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2019-12-27 01:31 |
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The Bitcoin price is trading inside a descending channel and has reached a minor support area. If it completes the fifth wave and follows a previous pattern, it will increase towards $7800.
Bitcoin Price Highlights The Bitcoin price is trading inside a descending channel. There is minor resistance at $7280 and $7420. There is minor support at $7140. The price has possibly completed the fourth wave of a five wave Elliott formation. Descending ChannelThe Bitcoin price has been trading inside a descending channel since December 23. It has validated both the resistance and support lines thrice.
Additionally, once the price reached the minor support area at $7140, it created a long lower wick and began an upward movement to the previous breakdown level and the descending resistance line.
Bitcoin Trading RangeHigher time-frames reveal the Bitcoin trading range since November 20. The price is currently in the upper portion of the range, between $7100-$7600.
While the channel is a neutral pattern and technical indicators do not point one way or the other, the current price structure allows for a placement of a stop loss in order to navigate open position. Placing one below the current wick lows of $7050 would prevent losses in a possible rapid decrease towards $6600, since we do not believe the minor support area at $6900 will be able to initiate a reversal, due to the lack of support.
Elliott FormationThe Bitcoin price is likely completing a five-wave Elliott formation. Inside it, there is another possible pattern developing.
The price has followed a bullish engulfing candlestick with three smaller candles that have been contained in the prior bullish candlesticks body.
If the price follows the same pattern again, it will create a bullish engulfing candlestick today towards the range highs of $7800.
To conclude, the Bitcoin price is trading in a neutral channel. While the outlook is uncertain, we believe it is more likely to increase towards $7800. A decrease below $7000 would likely invalidate this possibility and cause a rapid decrease, so the use of a stop loss is mandatory.
Good luck and happy trading! For our previous analysis, click here.
The post Bitcoin Analysis for 2019-12-26 [Premium Analysis] appeared first on BeInCrypto.
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