Will Bitcoin Price Snap Three-Year December Winning Streak?
Bitcoin (BTC) can be closed for three consecutive weeks in December.
According to the Bitcoin Price Index at Coin Desk, major cryptocurrency by 2015, 2016 and 2017 market value increased by 14%, 30% and 40%, respectively. (BPI).
However, there has been a reversal from BTC, which has been continuing its winning streak this season.
BTC's convincing break below the 21-month index moving average (EMA) last month suggests bear market resumed at a record high of $ 20,000 12 months ago. In essence, the bear is under control and the price is currently trading below the main EMA of $ 5,747.
Also, the recent heavy rain from the recent low below $ 3,500 last Thursday was strongly depressed by a drop below 21 months EMA, with steam being depleted near $ 4,404 in April.
On the other hand, historical data show that BTC won a similar success in December 2013 for the third consecutive year.
As you can see above, BTC recorded a profit in December 2010, 2011 and 2012, then ended the 2013 trend and dropped 33%.
The bears are in control after the November sale, and the historical pattern is likely to be repeated.
However, the likelihood that BTC will extend the winning streak in December is likely to rise if the price of the newly created resistance line of $ 4,410 (November 29th) is clean.
At the time of writing, BTC was trading at $ 3,980 at Bitstamp and fell 1.1% from its monthly starting price of $ 4,024.
As you can see above, the strength of the Relative Strength Index (RSI) on the 14th confirmed on Wednesday did not cause a rally. This means that bearish sentiment is still strong.
BTC also made doji candles on Thursday, showing optimism in the market despite optimistic remarks and confirmed the end of the correction by falling below $ 4,000 on Friday. Fundamentally, cryptocurrency carved a lower height (bearish pattern) at $ 4,400.
The 5-day and 10-day exponential moving average (EMA) also tilted to the south, indicating weakness.
As a result, cryptocurrency is set to retest the latest low of $ 3,474.
But a persuasive break above $ 4,400 (the best on Nov 29) will restore optimistic outlooks and allow ongoing rallies to $ 5,000 in mental resistance.
The declining triangle collapses (a bearish continuous pattern) and downward tilted 5 and 10 week EMAs indicate that the least resistance path is at a disadvantage.
The 14-week RSI is well above the 30.00 (ultra-low temperature range), which means that there is a range to fall to $ 3,000.
It is unlikely that this year's BTC will finalize the win in December.
BTC's low of $ 4,400 signaled the end of the correction bounce. Therefore, retesting for a recent low of $ 3,474 can not be ruled out.
If the newly established $ 4,400 resistance is persuasively adjusted over the next few days, BTC will gain December profits for four consecutive years.
Disclosure: Authors do not retain cryptocurrency assets at the time of writing.
Bitcoin image through Shutterstock; Price view by deal view
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