Bitcoin(BTC/USD) Update 12/01/2018: Right Moves To Put Itself In Downtrend!!!!!

Yes, you have read rightly in headline that Bitcoin is doing things which is taking it in downtrend. It has done or broken the important levels to be called in interim downtrend but full fledged downtrend is yet to get confirmed. Currently, Bitcoin is trading at $13683 or 2.75 up from yesterday's close. 

Lets look at chart of Bitcoin to see its development...........

Why downtrend?

Its a burning question in your mind that why i calling or questioning the trend of bitcoin which was up. A reason for questioning is breach of important support level of $13741 which was holding Bitcoin for many days was finally broken yesterday. It not only breach that important support but close close below it which is itself a bearish indication. 

Though in today's session retest of this prior support is undergoing but bitcoin is finding hard to stay above $13741 level, no doubt attempt is there but result yet to be seen. Today's close will be interesting to watch in respect of trend.

Contraction Cycle

One can clearly see on chart above that both moving averages 10 days and 50 days are contracting. Bitcoin is trading below 50 days EMA after closing below in yesterday's session. As long bitcoin stay below 50 days EMA , trend to be called down only.

When Downtrend Gets confirm?

Bitcoin has risen from $12847 level many times, so this level is important in deciding the trend. It was Higher low in long term uptrend, if Bitcoin slips and close below that Higher Low, downtrend will get confirmed.

Conclusion

In the end, it is confirmed that Bitcoin is really facing the pressure which is taking it down. Breach of important support levels is adding to its misery and $12847 level is last hope for Bitcoin to resume uptrend, but low volumes in today's session which is being traded with positive bias today is questioning the participation of buyers and lack of buyers participation is only making a sellers hands strong which is the last thing investors want.

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