Bitcoin (BTC) was rejected on December 7th and has failed to regain its previous support line. There is a short-term horizontal support area at $ 47,000 to $ 48,150.

On December 7, Bitcoin hit a high of $ 51,936 before falling again. The high serves to confirm the previous rising support line (red symbol) as resistance. Additionally, this line also coincides with the $ 52,500 resistance area created by the 0.382 Fibonacci retracement resistance, further adding to its strength.

BTC was rejected from this level and has been in decline since then. Technical indicators offer a bearish outlook.

The MACD, formed by the short and long-term moving averages (MAs), is in negative territory and is decreasing. This is a sign that the short-term MA is falling faster than the long-term MA. His histogram begins to create a higher momentum bar, but it could expire before the daily candle closes.

The RSI, a momentum indicator, is below 50 and is bearish. This is also a sign of a downtrend.

Therefore, the daily chart offers a bearish outlook.

BTC / USDT daily chart | Source: TradingView

Current channel

The six-hour chart shows that BTC has been trading in a descending parallel channel since November 10, after hitting an all-time high of $ 69,000.

BTC is currently trying to reclaim the center line of the channel and confirm it as support (red circle).

Both the MACD and RSI are bullish, although the former has not entered positive territory and the latter is below 50.

More importantly, the channel’s resistance line should be in line with the $ 52,500 resistance area previously outlined.

Hence, the correction cannot be considered complete until BTC breaks this level.

BTC / USDT 6-hour chart | Source: TradingView

Short term volatility

If BTC goes down there will be short-term support between $ 47,000 and $ 48,150. This is the horizontal area of ​​support created by the 0.382-0.5 fib retracement levels of support.

Hence, it would be appropriate for BTC to hit a higher low and recover in the opposite direction.

Hourly BTC / USDT Chart | Source: TradingView

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page