Bitcoin Price Analysis Dec.15: New annual low, the $3000 target is much closer

In our previous price analysis from two days ago, we mentioned that Bitcoin is testing the $3200 annual low for the third time in a week.

As expected, the support didn’t hold this time, and BTC had discovered a new record low. As of writing this update, the current low stands on $3122 (Bitstamp).

This brings the price of Bitcoin one step closer to our predicted target at $2700 – $3000, which was written about a month ago when Bitcoin was over $6000.

Looking at the 1-day & 4-hour charts

Bitcoin is forming a falling wedge pattern: This kind of wedge is usually a bullish formation. However, considering the bearish momentum Bitcoin is paving through, the direction of the breakout is very unclear. We should expect a breakout during the next 1-2 days.
The positive scenario could be a test of the wedge’s bottom close to the legendary $3000 area, before bouncing back and breaking up the wedge.
In case of a break up: $3200 had turned to be the next resistance, whereas the following possible bounce levels are $3300 and $3400.
A bearish breakdown is likely to send Bitcoin to test good old levels: $3000, $2900 and $2700.
Looking at the daily chart’s RSI: As of now, the significant ascending line support seems to have broken down. The next hours will be critical.
Stochastic RSI oscillator of the daily chart is at its low, while the one of the 4-hour chart had just crossed up. The market is oversold and might need some air (correction).
The daily trading volume is low. This is reasonable and typical to weekends.
BitFinex’s open short positions had increased to 38,700 BTC open positions.