Bitcoin (BTC) has once again been below US $ 8,000, down to US $ 7,875 in recent hours , after yesterday it was rejected by a weak attempt to break from the local fund.
This is the last support area for BTC within the structure of the local market, and the hopes of a reversal of a new uptrend now seem almost lost. The leading cryptocurrency should definitely stay here, or else it runs the risk of continuing a big downtrend in 2020, according to the Cryptocurrency analysis .
Starting with a 12-hour chart in the medium term, we see the entire structure of the local market formed by the October minimum and an increase of up to US $ 10,350. A setback from that height has become a general and relentless downtrend, which crosses all Fibonacci levels to 0.786.
BTC chart | TradingView
We can see that Bitcoin has entered the support zone since October, and is now in a situation similar to that of a month ago. The key difference we can notice here is that the volume of this downtrend has generally been lower in November, than during the hectic October market .
If we look at the 12-hour indicators, we see that if the price can really be maintained here, a hidden divergence of the bull will be formed in the RSI (a lower minimum in the RSI with a higher minimum in the price) during the period of September to November, suggesting that the weak upward trend that began on October 25 may continue. This suggestion would probably be formed within a theory of the giant bear trap.
Otherwise, in the histogram, we see that a higher minimum has been placed during the downtrend of November, forming a general divergence of the bull in momentum.
Finally, moving to the 4-hour chart, we see that Bitcoin remained very diligently below 8 EMA. Yesterday, when an attempt came to finally close above 8 and perhaps establish a foothold of an uptrend, aggressive sales came in to suppress this attempt and push BTC back below 8 to close the candle. The bears went to work here, and that paved the way for the current collapse to less than US $ 8,000 .
If the price can stay here, however, and begin to form a fund, we could get a bullish divergence in the RSI. But that’s a big “yes”: the sales volume has been quite high here, with the current four-hour candle almost on par with the four-hour sales candle on Monday after only two hours. The histogram looks bad, with an arc falling brutally with today’s movement .
Things look bad for Bitcoin . This seems to be the eleventh hour for the structure of the local market. If support does not arrive now, we could see a return below US $ 7,000 or worse, before 2020.