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Bitcoin Price Analysis: Dips to Six-Month Low of $7K

November 22, 2019 at 2:47 PM | By Jit Sutradhar Markets

Look

  • Bitcoin price has dropped to $ 7,000 a minute – the lowest level since the May.
  • Further losses may extend the channel support at $ 6,800, with a weekly chart indicators bearish bias strongest reported since March.
  • Oversold intraday chart report. As a result, consolidation or a small bounce to $ 7,500 can be seen before a deeper decline.
  • A break above $ 8,231 is needed to lower the highest cancel the setup and confirm the short-term bullish reversal.

Prospects accordance weekly chart will turn bullish after the RSI has moved above 53.00.

Bitcoin prices fell to six-month lows on Friday, with technical indicators are widely tracked report bearish bias strongest in eight months.

Cryptocurrency number one with a market value fell to $ 7009 on Bitstamp at 10:05 UTC – the lowest level since May 17 – delete the entire rally from $ 7,293 to $ 10,350 in October, plus some.

As of press time, BTC has bounced back slightly and was trading at $ 7220, down 8 percent for 24 hours.

seen Continuous downtrend, as weekly relative strength index (RSI) – an indicator used to confirm the market trend and overbought and oversold conditions – had declined to 43.00, the lowest since mid-March. A reading below 50 indicates a bearish condition. So, it seems safe to say the market sentiment is extremely bearish.

Weekly chart

weekly-chart

RSI holding under 50 and points south (on the left), confirming the bearish trend in the market. The MACD histogram is also print bar deeper below the zero line, indicating the strengthening of bearish momentum.

cryptocurrency trapped in a falling channel (top right), which is represented by trendlines connecting the June and August highs and lows in July and September.

As a result, a further decline to channel support at $ 6,800 can not be ruled out. That said, a small bounce for $ 7,700- $ 7,800 can be seen first, according to the intraday chart.

Hourly and 4-hour chart

hourly-and-4-hour-chart_2

The RSI on the hourly chart resulted in the lowest position higher than the lower lows on the price chart – bullish divergence suggests sellers may run out of steam. The RSI on the 4-hour chart floating far below 30 indicates oversold conditions.

8-hour chart

8hour-chart

The series of lower highs and lows seen above shows the bears are in control. Prospects will soon turn bullish only if and when the highest price lower cancel setup with a move above $ 8231.

Overall, the outlook corresponding weekly chart will remain bearish as long as the RSI is held below 53.00 and the price is trapped in the channel falls.

Note that according to the rules of textbooks, step RSI above 50 suggests a bullish reversal. In this case, however, 53.00 is the line of demarcation between bulls and bears.

This is due to the fact that the indicators are consistently rising from the 53.00 level throughout the 2016-17 bull market. breached level at the beginning of January 2018 following the BTC fell to $ 6,000 on February 6.

Image via Shutterstock

This article is republished from coindesk.com. If you have any questions, objection or any other matter you can contact us. Thank you for visiting our website.

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