FX.co ★ BTC 12.16.2019 - Watch for potential drop on the BTC

Industry news:

Some facts:

Longs were extremely liquidated in comparison to shorts

A total of $12.3 billion longs were liquidated while only $7 billion shorts were liquidated

Shorts dominated the start of 2019 while longs are starting to come into play

Bitcoin's median return has consistently increased since 2015; However, the 2019 average return has performed worse than in 2018

As Bitcoin moves sideways, stuck in the $7,000 region, the year comes close to an end. 2019 has certainly been a tumultuous year, with Bitcoin dragging itself through the low $3,000s and pumping to $13,800 out of the blue.

With the launch of Bakkt's physically-settled Bitcoin Futures and other major updates, Bitcoin has grown and perhaps, matured, as a decentralized currency in the last 350 days or so. However, with Bitcoin and cryptocurrencies come inherent risks due to their volatile nature and many traders have faced volatility's music and suffered the consequences.

Technical analysis:

BTC has been trading downwards, exactly what I expected in my previous analysis. The Bitcoin tested the level of $7.020. BTC is heading towards my main downward targets at the price of $6.850 and $6.539.

MACD oscillator is showing negative reading, below the zero

Resistance levels are seen at $7.300 and $7.730

Main support level is set at the price of $6.850 and $6.539