Insights > Technical analysis > This price action could mark the end of the correction on Bitcoin

This price action could mark the end of the correction on Bitcoin

4 December 2019

Temps de lecture 5 minutes

Julien Moretto

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Mixed feelings this week on the cryptocurrency market with Bitcoin stable at +4.7%, at €6,800 ($7,550). Following a bounce, the market has been on a downtrend again since November 30. The €6,000 ($6,500) level remains the most recent low to watch. Ideally, the price should remain above the €6,600€ ($7,200) pivot to hope for a bullish reversal. With a few exceptions such as Tezos (XTZ) or VeChain (VET), altcoins are also stable this week after the strong drop in November. This week, we are unveiling a price action in the daily timeframe that could indicate a bullish reversal on Bitcoin.

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  • According to CoinGecko, market capitalisation rises a little this week, to $205 billion from $171 billion last week.
  • The dominance of Bitcoin remains stable at 66.5%.
  • Tezos (XTZ) remain well oriented with +5.7% in seven days. Good performance for Vechain (VET) which gained 20%.
  • A new bill passed by the Bundestag allows German commercial banks to store and sell cryptocurrency services.

We invite you to discover our complete analysis in video (in french and dated from December 3):

Bitcoin (BTC)

Coinhouse recommendation: 

  • Buyers gave a first positive signal last week with a bounce on the €6,000 ($6,500) level which remains the last low to watch. We still recommend to buy as long as the price does not close under the €6,600 ($7,200) pivot on the daily timeframe.
  • The next levels of resistance to watch out for are: €7,500 ($8,200), €7,800 ($8,500) and finally the pivot that was used as a support this summer at €8,500 ($9,400).
  • Going back above €7,800 ($8,500) will be a short-term bullish signal. But it is a bullish break above the €8,500 ($9,400) pivot that we will restore a long-term bullish sentiment on Bitcoin.
  • Volumes are currently too low to talk about reversal signals. The price should first form a higher low on the daily timeframe. This price action would signal a potential reversal and therefore the end of this correction which has been going on since the end of June. In concrete terms, it would be necessary to bounce back on the current price zone of $7,200 to form a higher low compared to the $6,500 low of last week.
  • In the case of a bearish scenario, a drop below €6,600 ($7,200) would be a sell signal. If the situation really deteriorates, it will be necessary to watch out for the 200-week moving average on the weekly timeframe, which is currently on the €4,300 ($5,000) level. The Bitcoin price has never fallen below this moving average. It will be the last chance to continue a long-terme bullish sentiment. If the price falls below this level, it will be a long-term sell signal on Bitcoin.

Ethereum (ETH)

L’avis Coinhouse : 

  • Ethereum rises slightly this week. He gains 1.4% over the last seven days, at €135 ($150) on December 4.
  • We continue to wait this week on Ethereum. Volumes are low, the price is doing sideways and does not give any particular signals of a bullish recovery. Only a bullish break of the €160 ($180) level will be a new buy signal on Ethereum. But this signal will have to be accompanied by much more significant volumes and a bullish situation also on Bitcoin.
  • On the contrary, a bear break of the €123 to €127 level ($135 to $140) will indicate a further drop on Ethereum. Price levels between $100 and $125 will then be possible.

Cosmos (ATOM)

L’avis Coinhouse : 

  • Cosmos (ATOM) had an honourable week compared to many other altcoins, with +6.2%, up to €3.36 ($3.72).
  • Since the beginning of September and the drop on its long-term support at €1.80 ($2), Cosmos has been in a slightly bullish range, which encourage to remain long-term positive on this asset.
  • Short term, we recommend to wait before making new purchases. Cosmos is probably in a compression pattern on the daily timeframe. He hit a recent high of €3.95 ($4.30), before bouncing back on his €2.70 ($3) pivot and reaching €3.70 ($4) on November 29. All this in relatively low volumes.
  • If the current compression ends with a bullish exit, we will buy the bull break of the €3.70 ($4) level. On the contrary, if the price drops below €2.70 ($3), the situation will become neutral on Cosmos.

Top & flops of the week (top 50 marketcap)


1- OKB : +21,8%
2- VeChain (VET) : +20,3%
3- Huobi Token (HT) : +13,9%


1- Basic Attention Token (BAT): -6,5%
2- ChainLink (LINK) : -6,1%
3- Augur (REP) : -4,9%

Hot crypto news

  • The Upbit marketplace was hacked. 50 million Ether were taken by the attackers.
    It is always recommended to make sure of the platforms you use hold the best standards in terms of security practices.
    Our custody system at Coinhouse is based on the latest technologies developed by Ledger, the Ledger Vault. Safety is not to be taken lightly.
    Otherwise, keep your cryptos yourself, via physical wallets.
  • Microsoft launches a collectible card game on the VeChain blockhain.
    In the footsteps of Gods Unchained on Ethereum, this is an interesting use case for blockchains.
    Each card is represented by a token.
    This helps to emphasize the notion of ownership and opens the way to secondary markets.
    The game will be based on the bestseller book of the 1980s: “The way of the tiger”.
    VeChain is positioned as a smart-contract platform that focuses on enterprise applications.
  • The number of dying altcoins is constantly increasing.
    We’re mostly talking about the 2017 generation, mainly composed of Ethereum tokens.
    Their valuations are often returned to pre-bubble levels.
    Many – very – bad projects.
    The same phenomenon had occurred with the 2014 projects. History repeats itself.
    Don’t buy whatever is marketed to you on the internet, especially on a medium/long term basis, and take advice from Coinhouse experts.


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