Bitcoin Pushes to $7,087 Low but Fails to Secure a Sharp Bounce

Bitcoin dropped to the $7,000 low and moved up to retest $7,200 resistance. A possible rebound is expected as the coin finds support at $7,000 or $6,800

Bitcoin Price Long-Term Prediction: Bearish

Expectantly, Bitcoin is making a gradual fall to a low of the $6,800 or $7,000 support level. On December 14, the coin dropped to the low of $7,087 and moved up to retest the $7,200 resistance. BTC is pointing downward to the low of $7,087 to retest it. Our main focus is whether BTC will revisit the previous low of $6,800. 

When this low is broken, it will be possible to determine whether the coin will nosedive to the lows of $5,500 or $6,000. In contrast, Bitcoin is expected to rebound at a low of $7,000 or $6,800. A bounce should be strong enough to push Bitcoin above $8,000. A shallow bounce will only result in a range-bound move above the current price level.

Bitcoin Indicator Reading 

Surprisingly, the coin has dropped to the oversold region of the daily stochastic. It is a confirmation that the downward move is possible as the coin is in a strong bearish momentum. The blue and red lines of EMAs are sloping southward but acted as a resistance to the coin.

What Is the Next Direction for BTC/USD?

Bitcoin has already fallen to a low of $7,000 but the market moved up to retest the $7,200 resistance. The coin is falling after a retest; a break below $7,087 will result in a low of $6,800. Traders should lookout for  buy setups as the coin is likely to rebound at the previous low.

Key Supply Zones: $10,000, $11,000, $12,000

Key Demand Zones: $7, 000, $6, 000, $5,000

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.