TheBitcoin price appears very close to reaching a bottom. A confluence of support areas suggests that the bottom will occur near $6000.<\/p>\n
Even though yesterday the market experienced a rapid decrease, the current trading pattern and long-term support lines indicate that Bitcoin should be close to reaching a bottom.<\/p>\n
Additionally, yesterdays decrease has not dissuaded investors to enter the market. On November 22, Bakkt reached a new all-time high at a volume of $13.4 million. This happened through the handling of 1863 Bitcoin contracts.<\/p>\n
Therefore, if Bakkt is reaching such levels in a bearish market, the next bull run could bring extraordinary numbers.<\/p>\n
As for when the bull market might begin, crypto trader and analyst @filbfilb tweeted the sole chart which he believes is the best one to predict the current market movement.<\/p>\n
He is using a descending channel that shows the price bouncing on the support line.<\/p>\n
Lets take a closer look at this channel and see where a reversal might occur.<\/p>\n
Looking at the Bitcoin price movement, we can indeed see a descending channel in place since the June 24 high. Due to the presence of several wicks, the support and resistance lines could follow slightly different slopes.<\/p>\n
Additionally, outlining a wave count we can see that the price is likely in the fifth and final wave of a 3-3-5 correction.<\/p>\n
It is possible that the correction end near $6000, at the support line of this channel and previous support area.<\/p>\n<\/p>\n
The $6000 target also coincides with the long-term logarithmic support line in place since 2011.<\/p>\n
There is a confluence of support from both the line and the channel right at $6000.<\/p>\n<\/p>\n
Looking closer at the movement, we can see that the price has found support above the 50-week moving average (MA).<\/p>\n
While a decrease to $6000 would take the price below this MA, it would be right above the 200-week MA. We could see a scenario similar to that in January 2019 when the price bounced at the support line and the 200-week MA, which were at the exact same level.<\/p>\n<\/p>\n
Finally, the daily RSI gives us an interesting development.<\/p>\n
First, it has reached oversold values. Every time it has done so previously, an upward move ensued.<\/p>\n
Additionally, there is bullish divergence inside the oversold levels. The only time this happened was during the December 2018 low.<\/p>\n<\/p>\n
To conclude, the Bitcoin price is trading inside a descending channel. There are several strong support areas at $6000, making it a very likely place to initiate a reversal. This view is supported by the readings from the RSI and previous price history.<\/p>\n
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.<\/p>\n
Images courtesy of Twitter, TradingView.<\/p>\n
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Original post: <\/p>\n
Bitcoin Analyst Identifies $6000 as a Likely Bottom - BeInCrypto<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" TheBitcoin price appears very close to reaching a bottom. A confluence of support areas suggests that the bottom will occur near $6000 Continue reading