Is Bitcoin Now Bullish or Bearish at $7K? Here’s the Scorecard

The price of Bitcoin (BTC) closed the second week of December at $7,111, down 5.44% for the week with five of the seven days being days of decline. So far on Monday, Bitcoin is trading down around 0.8% and currently holding above the $7K handle at $7,055.

Bitcoin dominance remained flat throughout last week and remains at around 66.5% of the total cryptocurrency market cap of $193 billion, illustrating that all other majors followed Bitcoin to the downside over the last 7 days. 

With Bitcoin finding its terminal lows for 2018 exactly 365 days ago, we will explore how Bitcoin is looking one year on, up almost 120% on the previous year.  

Cryptocurrency market 7-day view

Cryptocurrency market 7-day view. Source: Coin360

Weekly chart

BTC USD Weekly chart

BTC USD Weekly chart. Source: TradingView

Chart Structure / Support / Resistance -2: Bearish

  • There is a clear 24-week downtrend which began in July — bearish
  • Multi-week support of $7,600 was lost four weeks ago and has now turned into resistance for three weeks — bearish
  • Bitcoin has found initially strong support at an old support level of $6,400, which bounced 20%; however, the price has been in decline since — neutral

Key Moving Averages +1: Bullish

  • The 50/100 week moving averages are crossed bullish, which has previously prompted long term sustained upward moves for Bitcoin price — bullish
  • Price is trading below the bullish cross and finding resistance in both the 50 and 100 Week Moving average — bearish
  • Bitcoin is trading above the 200-week moving average, which is also trending higher — bullish

BTC USD Weekly chart

BTC USD Weekly chart. Source: TradingView

Moving Average Convergence Divergence (MACD) -1: Bearish

  • The MACD is below zero meaning that the exponential moving average (EMA) of the 12 and 26 are crossed bearish — bearish
  • There are higher lows on the histogram that is in deviation to lower lows in price, which is considered bullish divergence; but this is unconfirmed until there is a bullish cross on the MACD meaning it is relatively positive, but overall neutral

Relative Strength Index (RSI) -1: Bearish

  • The RSI, a momentum indicator, is trending below 50 — bearish
  • The trend appears to be weakening to the downside but is too early to call bullish — neutral

Volume and On-Balance Volume (OBV) +1

  • Volume has been decreasing since June — in a downtrend, this is typically viewed as bullish
  • OBV has flattened out, illustrating that cumulative volume to t