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#1 19-12-2019 21:52:54

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2886

Bitcoin: does Wednesday's violent rebound mark the end of the decline?

Bitcoin: does Wednesday's violent rebound mark the end of the decline, or is this an opportunity to sell?
After dropping in increments since the beginning of the week, Bitcoin posted a phenomenal rise on Wednesday, gaining about 14% in 9 hours, between a low of $6,419 and a high of $7,416.

The BTC/USD had indeed accentuated its decline to a 7-month low, but the test under $6,499 seems to have attracted buyers, and lead to a violent rebound of the Bitcoin.

From a fundamental point of view, nothing can be found that can explain even part of Wednesday's powerful rise, however, many observations can be made from a technical standpoint.

On the positive side, it is worth noting that Bitcoin is back above its 100-hour moving average and above its 200-hour moving average.

On the negative side, we note that the BTC/USD is struggling to maintain the 200-hour moving average, after a daily low on the psychological threshold of $7,000, which must be considered as an immediate support level, coupled with the 100-hour moving average currently at $6,955.

Below this threshold, a new support test of $6,500 will be possible.

On the upside, Wednesday's highs and the intermediate psychological threshold of $7,500 are the first resistance levels to watch for.

However, by distancing ourselves from the short-term movements on the daily chart, we can see that the clearly bearish underlying trend that has been dominating Bitcoin since June is in no way jeopardised by the recent rebound.

On the contrary, one could consider this time unit as an opportunity to position oneself for selling.

A return above the psychological threshold of $8,000, or above the 200-day moving average at $8,315 currently seems necessary for the bottom downward pressure to diminish.

Currently, Bitcoin is trading around $7120.

Hourly BTC/USD chart

"Anything worth having is worth going for - all the way." - J.R. Ewing



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