|$7,570, $7,698, $7,915, $8,000, $8,242|
|$7,123, $7,000, $6,790, $6,569, $6,423|
*Price at the time of publication
Bitcoin has seen a small 2.55% price decline over the past week of trading as it is currently changing hands at a price of around $7,280. Despite this recent price drop, Bitcoin continues to trade sideways as it is trapped within a range between $7,686 and $7,123. The cryptocurrency has been trapped within this range for the majority of December, except for a brief period in which Bitcoin tanked to $6,423 before rebounding higher back into the stated range.
Bitcoin remains the dominant cryptocurrency with a market cap value of $133.50 billion. A breakout of the aforementioned range will be needed to dictate the next direction for Bitcoin.
Bitcoin price analysis
What has been going on?
Analyzing the daily chart above for Bitcoin, we can instantly see the trading range that Bitcoin is trapped within. Bitcoin currently remains heavily supported at the $7,123 level, but has been unable to break above the resistance at $7,686 which is provided by the bearish .382 Fibonacci Retracement level.
We can see that Bitcoin has been trapped within this price range for the majority of December, except for when Bitcoin dropped lower into the $6,423 level before rebounding back higher.
Bitcoin price short-term prediction: Neutral
After returning back into the aforementioned trading range, Bitcoin can now be considered as a neutral market. For this market to be considered as bullish, Bitcoin must rise higher and break above the resistance at $7,686. For this coin to be considered as bearish, Bitcoin must fall beneath the support at $7,123 and continue beneath $7,000.
If the sellers do regroup and push the market lower, initial support is found at $7,123. Beneath this, additional support is expected at $7,000, $6,790, $6,423, and $6,269. If the selling continues further, lower support can be found at $6,195, $6,000, and $6,894.
What if the bulls regroup?
Alternatively, if the bulls regroup and push higher, an initial resistance is located at $7,686. Above this, resistance lies at $7,915, $8,051 (bearish .5 Fib Retracement and 100-days EMA), and $8,255 (200-day EMA).
If the bulls continue to climb above the 200-day EMA, higher resistance lies at $8,416 (.618 Fib Retracement), $8,600, $8,800, and $9,000.
What are the technical indicators showing?
The RSI remains above the 50 level, but the sellers are attempting to take control over the market momentum as the RSI returns to 50. Furthermore, the Stochastic RSI is in overbought conditions and a bearish crossover signal would send the market lower.
Previous BTC price analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here's 3 of our most recent articles about the price of Bitcoin:
Bitcoin has seen a small 2.55% price decline over the past week […]