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  • Bitcoin price is currently in a downtrend below the $9,100 pivot level against the US Dollar.
  • The price is trading well below the $8,500 support and the 100-day simple moving average.
  • There is a crucial bearish trend line forming with resistance near $8,880 on the daily chart of the BTC/USD pair (data feed from Kraken).
  • If the current trend remains intact, the price could test $7,400 or even $6,500.

Bitcoin price is following a significant downtrend on the daily timeframe against the US Dollar. If BTC fails to stay above $7,400, it could hit the $6,500 support area.

Bitcoin Price Analysis (Daily Chart)

At the end of the October 2019, bitcoin started a sharp increase from the $7,283 low against the US Dollar. BTC surged above the $8,000 and $9,100 resistance levels. Moreover, there was a nasty spike above the $10,000 resistance area.

However, the price failed to settle above the $10,000 resistance and the 100-day simple moving average. A high was formed near $10,576 before the price started a fresh decline.

This month, the price lost almost all its gains and traded below the key $9,100 pivot level. Besides, the price broke the 61.8% Fib retracement level of the October’s rally from the $7,283 low to $10,576 high.

It is now trading well below the $8,500 support and the 100-day simple moving average. An immediate support is near the $8,060 level since it coincides with the 76.4% Fib retracement level of the October’s rally from the $7,283 low to $10,576 high.

If there is a downside break below the $8,060 and $8,000 support levels, bitcoin is likely to slide towards the $7,400 support area or the $7,283 low. In such cases, the price mostly breaks the last swing low ($7,283).

In the mentioned case, the price may perhaps test the $6,500 support. It represents the 1.236 Fib extension level of the October’s rally from the $7,283 low to $10,576 high.

On the upside, there are many resistances for the bulls, starting with $8,500. Additionally, there is a crucial bearish trend line forming with resistance near $8,880 on the daily chart of the BTC/USD pair.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is clearly following a nasty downtrend on the daily chart below $8,500 and $8,700. It is likely to test $7,400 or even $6,500 unless there is a daily close above the $8,880 resistance.

Technical indicators:

Daily MACD – The MACD is gaining pace in the bearish zone.

Daily RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving lower and is well below the 40 level.

Major Support Levels – $7,400 followed by $6,500.

Major Resistance Levels – $8,500, $8,700 and $8,880.

Aayush Jindal , 2019-11-19 13:30:30

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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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