Last week we were able to observe a large discount of Bitcoin, which after creating the last peaks just under 19000 fell to around 11400 USD, where important support is located. The end of the year, however, does not have to mean permanent drops, due to the fact that the most popular cryptocurrency has already recovered more than half of the losses and is currently testing the supply zone located in the price region of 16200.

Picture 1. Technical analysis, bitcoin, H4.27.12.2017

In the case of breaking the mentioned zone and continuing the increases, the next target for the bulls seems to be the last maxima in the area of 19000 USD. By analyzing the dynamics of the rebound, the correction movement is likely to end, and the upward scenario appears to be the most probable.

Picture 2. Technical analysis, bitcoin, D1,27.12.2017

The dynamics of reflection are clearly visible at the time interval D1, where the long bottom shadow of the daylight candle from December 22 shows how strong the demand reaction in this area was.

Risk Warning: The contents of this analysis is for informational purposes only and does not constitute investment advice.

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