Bitcoin - Technical Analysis - Mon, Dec 16, 2019

On Wednesday, December 11, the Federal Reserve left the interest rates unchanged in the 1.5%-1.75% range as expected and indicated that the loose monetary policy in historical terms will continue throughout 2020.

On the next day, the Governing Council of the European Central Bank made a decision to continue the accommodative monetary policy as well. The central bank's key interest rate remains unchanged at a historical low of 0.00% and the bank will continue to inject liquidity at a monthly pace of €20 billion into the European financial system.

Many cryptocurrency enthusiasts welcomed the decisions of the major central banks to continue the loose monetary policy and they expect an increase of inflationary pressure which may trigger another Bitcoin bull run.

For instance, PlanB tweeted, warning the crypto community of possible hyperinflation:


Source: Twitter

However, the price of Bitcoin didn't react positively to the decisions of the central banks and has been hovering near the psychological level of $7,000 per one digital coin. At the moment, the BTC/USD pair is trading at the level of $7,087.16:


Daily crypto market performance. Source:

Bitcoin Technical Analysis

On the daily chart (D1), the bears are still prevailing over the bulls as BTC/USD continues to trade inside the «descending channel»:


Currently the price of Bitcoin stays at 38.2 Fibonacci retracement level. The next support level is 23.6 Fibonacci retracement level or $5,753.80. The closest resistance level is 50.0 Fibonacci retracement level or $8,336.50.

On the weekly chart (W), the bears are dominating the market as well – there is a sequence of candlesticks with descending local highs:


On the 3-hour chart (3H), the situation is neutral. There is a small probability of a price rebound from the lower line of the potential «ascending channel»:


If the Bitcoin price is able to rebound from the lower line of the potential «ascending channel» on 3H and remain within the channel, then it may reach the 50.0 Fibonacci retracement level or $8,336.50; otherwise the selling pressure may intensify and the bears may push the price further down to the 23.6 Fibonacci retracement level or $5,753.80.

In conclusion, the weekly and the daily time frames show bearish market sentiment, while the 3-hour chart is neutral.

Stay updated on everything Bitcoin-related with BitvalexBitvalex is a licensed digital wallet and cryptocurrency exchange; learn more about us and blockchain technology and sign up to use our services.

The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.

Leave a Comment