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  • Bitcoin price is extending its decline below the $8,250 resistance area against the US Dollar.
  • The price is likely to decline below the $8,000 and $7,800 support levels in the near term.
  • There is a major bearish trend line forming with resistance near $8,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • There are many bearish signs on the chart, suggesting a drop below $8,000.

Bitcoin price is facing an uphill task near $8,200 and $8,400 against the US Dollar. Therefore, BTC is likely to decline further below the $8,000 support area.

Bitcoin Price Analysis

This week, there were further losses in bitcoin below the $8,200 support area against the US Dollar. BTC extended its decline below the 100 hourly simple moving average and even tested the $8,000 support area.

A new monthly low was formed near $7,987 and the price is currently correcting higher. It traded above the $8,100 level and tested the $8,150 resistance area.

Furthermore, the price tested the 23.6% Fib retracement level of the recent decline from the $8,631 high to $7,987 low. However, the price seems to be facing a strong resistance near the $8,150 and $8,200 levels.

More importantly, there is a major bearish trend line forming with resistance near $8,150 on the hourly chart of the BTC/USD pair. If there is an upside break above the $8,200 resistance, bitcoin price could recover towards the $8,300 level.

The 50% Fib retracement level of the recent decline from the $8,631 high to $7,987 low is near the $8,300 area to act as a resistance. The next major resistance is now near the $8,400 level (the previous breakdown support).

It also coincides with the 61.8% Fib retracement level of the recent decline from the $8,631 high to $7,987 low. An intermediate resistance is near $8,360 and the 100 hourly simple moving average.

On the downside, an initial support is near the $8,000 area. If there is a daily close below $8,000, the price could even break the $7,800 support. Besides, the next key support is near the $7,400 level (as discussed in yesterday’s medium term outlook using the daily chart).

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is facing resistance near the $8,150 and $8,200 levels. Thus, there is a risk of more downsides below $8,000. To start a decent recovery, the price must settle above $8,200 and then gain momentum above the $8,300 resistance.

Technical indicators:

Hourly MACD – The MACD is losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving lower towards the 30 level.

Major Support Levels – $8,000 followed by $7,800.

Major Resistance Levels – $8,150, $8,200 and $8,300.

Aayush Jindal , 2019-11-20 06:00:22

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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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