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Bitcoin Price Prediction: BTC/USD Breakdown Below $7,100 Looms, Can Bulls Bounce Back?

Bitcoin (BTC) Price Prediction – December 16

Bitcoin price is struggling to recover above $7,100 against the USD but the coin remains at a risk of a larger breakdown below the $7,000 support.

BTC/USD Long-term Trend: Bearish (Daily Chart)

Key levels:

Resistance Levels: $7,800, $8,000, $8,200

Support Levels: $6,500, $6, 300, $6,100

BTC/USD – Daily Chart

BTC/USD bulls are intentional about finding higher support for Bitcoin. This battle comes after the coin tried and failed to extend gains past $7,227 which happened to be the daily high yesterday. The Bitcoin price is back under $7,100 and currently changing hands at $7,064. In this same manner, the price of Bitcoin moves below the 21-Day and the 9-Day moving averages within the descending channel.

However, an upside break above the 21-day MA around $7,340 is a must to start a substantial recovery. Meanwhile, the next hurdles may be seen near the resistance levels of $7,800, $8,000 and $8,200. On the downside, initial support is near the $7,050 level and if there is a successful break below the support level of $7,000, the bears are likely to gain strength by bringing the price to a low of $6,500, $6,300 and $6,100 respectively.

Currently, Bitcoin price follows a dominant bearish bias and a glance at the Moving Average Convergence Divergence (MACD) displays a negative picture for BTC in the near-term. In addition, maintaining a gradual downward trend in the negative region, the MACD divergence decreases as a signal for an increase in selling entries.

BTC/USD Medium – Term Trend: Ranging (4H Chart)

Yesterday, the Bitcoin price surged upwards of over $160 within 24 hours, catapulting its price from $7,042 to reach around $7,217. After the sudden rise, the coin started dropping in price to where it’s trading currently at $7,053. Should the price continue to drop further, it could reach the nearest supports at $6,900, $6,750 and $6,800 respectively.

BTC/USD – 4 Hour Chart

Moreover, if the bulls push the coin above the blue-line of the 9-day MA and the orange-line of 21-day MA, the price of Bitcoin may likely touch the potential resistance levels of $7,200, $7,300 and $7,400. Presently, the market is indecisive as the RSI (14) indicator moves below the 40-level.

Please note: Insidebitcoins.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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      Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.