Expectantly, Bitcoin fell and rebounded above $6,500 on December 18. The $6,500 was the previous low of November 25. The market respected the historical price level and rebounded. Bitcoin would have been in a disadvantageous position if the previous low had been broken. The bears could have taken the price to a low of $5,500. The rebound or the upward movement is a positive move as it will clear any dent on sentiment.
The initial upward move was resisted at $7,400 but the bulls are making a repeat retest. Bitcoin may reach a high of $8,000 if the price is sustained above resistance levels of $7,400, $7,600, and $7,800. A breakout above these resistance levels will propel Bitcoin to rally above the $8,000. Conversely, BTC may resume a sideways move if the bulls fail to break above the resistance levels.
The RSI level 51 indicates that the coin is above the centerline 50. This implies that Bitcoin is expected to rise. On December 18, the market tested the support line of the horizontal channel and rebounded. A breakdown at the horizontal channel will cause further depreciation for BTC.
Key Supply Zones: $10,000, $11,000, $12,000
Key Demand Zones: $7, 000, $6, 000, $5,000
With the rebound of Bitcoin, the coin has maintained the status quo. The coin is about breaking above the EMAs. There is a certainty that the upward move will continue if the coin is in the bullish trend zone. Traders should wait for the market to settle before initiating any trade.
Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.