Bitcoin price correction continues, hoping for $ 20,000 in 2020

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Bitcoin (BTC) is still in correction mode. BTC price drops below $ 17,600 on December 11th, its lowest level since November.

Bitcoin in a downtrend for shorter periods of time

Every nice rally comes to an end and is followed by a correction phase. This correction appears to have started with a price decline of more than 10% since it hit a new all-time high ten days ago.

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Meanwhile, some breaking news, namely the proposed US crypto rule, is bringing fear to the otherwise euphoric market. However, other markets have suffered this week, and stocks have cooled too.

BTC / USD 4 hour chart. Source: TradingView

The 4 hour chart suggests a significant bearish trend. Such a downtrend is confirmed by lower highs and lower lows as shown in the graph.

First, the price of Bitcoin failed to break the all-time high region, after which $ 18,500-18,700 acted as a strong support area for a week.

Each jump from this region (as the arrows show) marked a weaker jump as lower heights were constantly being formed. After three tests, support failed and the price of Bitcoin fell to the next support level between $ 17,600 and $ 17,800.

This support zone triggered a slight surge to $ 18,500-18,700. To become bullish, this zone had to flip for support, which it couldn’t. This rejection confirmed the bearish support / resistance flip after which the downtrend resumed.

Overall, the downtrend will see lower highs and lower lows until a clear bottom is found. However, it doesn’t seem that the market will discover it anytime soon as higher time frames are also out to turn south.

Bearish deviations in the daily timeframe are confirmed

BTC / USD 1-day chart. Source: TradingView

The daily chart shows a possible bearish divergence that is ready to play out. This bearish divergence will be confirmed when the price of Bitcoin falls and breaks through $ 18,600 to $ 18,800.

With that in mind, a previous resistance becomes resistance again, confirming that markets are weak overall and that more bearish moves are likely.