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  • Bitcoin price is trading in a downtrend below $8,800 and $9,000 against the US Dollar.
  • The price is currently declining and it seems to be struggling near the $8,840 level.
  • Yesterday’s major bearish trend line is active with resistance near $8,920 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The bulls need to push the price above $8,840 and $8,920 to start a decent recovery.

Bitcoin price is struggling to gain ground above $8,800 against the US Dollar. Recently, BTC traded as low as $8,560 and it remains at a risk of more losses below $8,500.

Bitcoin Price Analysis

In the past few days, there were lower lows formed in bitcoin after it settled below $9,000 against the US Dollar. BTC seems to be following a downtrend below the $8,880 resistance area and the 100 hourly simple moving average.

The recent decline was such that the price traded below the $8,640 level. Moreover, there was a break below the $8,600 support and the price traded close to $8,550. A new monthly low was formed near $8,560 before the price recovered above $8,700.

However, the price seems to be facing a strong resistance near the $8,800 level and the 100 hourly simple moving average. At the moment, the price is declining and is trading below $8,780.

Besides, there was a break below the 23.6% Fib retracement level of the recent wave from the $8,560 low to $8,838 high. An immediate support is near the $8,700 level.

The 50% Fib retracement level of the recent wave from the $8,560 low to $8,838 high is also near the $8,700 level. If there is a downside break below $8,700, there is a risk of more downsides. The next support is near the $8,560 low.

Any further losses could push bitcoin below the key $8,500 support area. In the mentioned bearish scenario, the price is likely to test the $8,300 support area in the near term.

On the upside, there are many resistances, starting with $8,800 and the 100 hourly SMA. More importantly, yesterday’s major bearish trend line is active with resistance near $8,920 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin is facing an increase in selling pressure below $8,800. If it fails to stay above $8,700, the bears could gain momentum for a push below the $8,600 and $8,500 levels.

Technical indicators:

Hourly MACD – The MACD is currently moving back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level, with a few positive signs.

Major Support Levels – $8,560 followed by $8,500.

Major Resistance Levels – $8,800, $8,850 and $8,920.

Aayush Jindal , 2019-11-13 06:00:28

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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