FX.co ★ BTC 12.10.2019 - Down cycle in the play, downward target set at the price of $6.570

Industry news:

China's inflation rate has jumped to 4.5 percent for the month of November — highlighting the value proposition of deflationary currencies, like Bitcoin.

China is notoriously hostile to cryptocurrencies, despite its government's commitment to blockchain. However, it's recent runaway inflation rate might force those in the country to see the other side of things.

As market analyst Mati Greenspan recently tweeted, China's inflation rate has been steadily rising. In the month of November, it saw a spike of 4.5 percent — with no indication that it will cease. Considering that China is the world's second-largest economy, this is cause for worry.

Technical analysis:

BTC is trading in consolidation at the price of $7.227 Anyway, there is chance for further downside and I expect down cycle with potential for test of $6.570 and $5.900.

MACD and Stochastic oscillators are showing increase on the downside, which is confirmation for the sellers in control.

Resistance levels are seen at $7.622 and $8.000. Main support level is set $6.570 and $5.900.