Bitcoin Technical Analysis December 6th

After falling sharply on December 4th, Bitcoin (BTC) broke its bullish structure. However, the price has started a short-term rally.

BTC fell significantly for the week of November 29 through December 5, hitting a low of $ 42,000, 27% below its opening price.

However, it rallied a little later and hit a closing price of $ 49,396. The rebound created a long wick at the bottom, which is a sign of buying pressure. It also confirmed the $ 44.275 area as support. This is both a horizontal zone and 0.618 fib retracement support.

However, the previous breakout above the USD 59,800 area is now viewed as a deviation (red circle) as the price was unable to hold above this support / resistance area.

BTC / USDT weekly chart | Source: TradingView

BTC breaks support

Looking at the daily chart, you can see that BTC broke below the rising support line on December 4th. Possibly the decline was caused by many traders triggering a stop loss.

The support line has been in place since late July when the uptrend was just beginning.

In addition, the technical indicators are falling.

The MACD, which is made up of the short and long-term moving averages (MAs), is falling and is in negative territory. This means that the short-term MA is falling faster than the long-term MA. Additionally, his histogram has started producing lower momentum bars, another bearish sign.

The RSI, a momentum indicator, is below the 50 line and falling. He failed to regain the 50 line and confirmed this as resistance. Since the 50s line is often viewed as the benchmark for an up / down trend, it is considered a bearish sign.

Therefore, while a bounce could serve to confirm the rising support line as resistance, the daily chart offers a bearish outlook.

BTC / USDT daily chart | Source: TradingView

Short term movement

The six-hour chart shows that BTC could be trading within a descending parallel channel. BTC moved below the channel on December 4th but has since returned to trading within that channel.

If the price continues to trade within the channel, this will be taken as a bullish sign. The reason for this is that parallel canals often contain corrective structures, so an eruption can still be expected.

However, a break from the channel’s support line can result in a much lower price.

BTC / USDT 6-hour chart | Source: TradingView

The two-hour chart shows the key area of ​​support between $ 45,854 and $ 46,763. This area includes the 0.382-0.5 fib retracement support and the horizontal support area.

If BTC hits higher lows and continues to rise, it will likely confirm the previous rising support line on the daily chart.

BTC / USDT 2-hour chart | Source: TradingView

You can see the bitcoin price Here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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