The price of Bitcoin has visited new lows below $7,000 recently and before that, closed the second week of December above $7,000. The latest crypto news show that BTC is down by more than 8% for the week and is trading around $6,923 at press time. This makes many people wonder and ask is Bitcoin now bullish or bearish?
If you are thinking that the recent move below $7,000 is a shocking one and that it makes BTC bearish, you are not the only one. However, the number of long positions of Bitcoin on Bitfinex has increased a lot lately and there are many other stats showing that BTC is in a good position despite the recent drop.
The dominance remained flat throughout last week and remains around 66.5%. So, is Bitcoin now bullish or bearish?
As the current Bitcoin news show, the total cryptocurrency market is definitely bearish as it stands below $190 billion now. BTC is seen as the leader in this position and it is finding its terminal lows for 2019.
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In comparison to last year, BTC is up by 120% which is a good sign for many traders.
However, there is a clear 24-week downtrend which began in July which shows that Bitcoin is bearish. The multi-week support of $7,600 was lost four weeks ago but Bitcoin is still in the $6,000 region with the latest sliding today. Despite the strong support that was found at an old support level of $6,400, BTC bounced by 20% and visited the $7,000 region before it slid back again to old levels.
When it comes to the key moving averages to tell us “is Bitcoin bullish or bearish,” we can see that the 50/100 week moving averages are crossed bullish. This has previously prompted long term sustained upward moves for the Bitcoin price.
Bitcoin is now trading above the 200-week moving average which is also trending higher. The MACD is below zero, which means that the exponential moving average (EMA) of the 12 and 26 are crossed bearish. With higher lows on the histogram, we can see that Bitcoin is bearish and the situation will be the same until there is a bullish trigger on the MACD.
All in all, the conclusion is that BTC is bearish and with the latest drop to $6,923, it confirms that the market is still vulnerable.
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