- Consecutive weekly loss Bitcoin and some failures at key resistance has transferred the risk in favor of a decline to around $ 8550 and possibly as low as $ 8,000.
- Daily chart indicators have turned bearish for the first time in more than a month, supporting the case for a deeper downturn.
- A high-volume move above $ 9335 (down trendline from 2019 high) is needed to revive the bullish view.
Bitcoin looking south after back-to-back weekly losses and some resistance in resistant locks price.
On cryptocurrency by market value fell 2.6 percent and 3 percent in the week ending 3 November and 10, respectively.
Importantly, BTC has failed for three weeks straight to close (Sunday, UTC) on a 3.5-month trendline sloping down from 2019 high of $ 13 880. Reception over obstacles that would mean the revival of the bull market set to move with a solid break above $ 5,000 in early April.
Inability to pass rate (currently around $ 9335) has weakened the bullish case filed by the high volume increase from $ 7,300 to $ 10,300 on October 25 to 26
Market demand usually test dip after some resistance at the key resistance and bitcoin already feeling the pull of gravity. As of press time, cryptocurrency trading at $ 8680 on Bitstamp, representing a decrease of 1 percent on a 24 hour basis.
Losses can be extended further with the 200-day moving average support now violated. Barometer long-term market trend is currently located at $ 9236. Other technical indicators have also turned bearish over the weekend.
BTC lost altitude, have faced rejection at the trendline down for three consecutive weeks.
The 14-week relative strength index (RSI) remained in bearish territory below the resistance at 53.00. It should be noted that the range of 53.00 to 55.00 act as a strong support throughout the 2016-2017 bull run.
Therefore, a move above 55.00, if and when it occurs, can be taken as confirmation of a bull market.
Monthly and daily charts
Bitcoin failure to hold above the descending, 5-candle bearish MA (above left), which is represented by the wick on a candle in October, is translating into falling prices, as expected.
MACD histogram on the daily chart (right) has crossed below zero over the weekend and is currently in the most bearish signal on October 3 with -59.00 reading. RSI is currently bearish below 50.
BTC has also found acceptance under the 200-day MA – a level that acts as a strong support in nine days for 7 Nov
All-in-all, BTC appeared on track for testing and may violate the 50-day MA at $ 8552. No violations would expose the psychological support of $ 8,000.
On the higher side, convincing step over obstacles 3.5 months decreased trendline, currently at $ 9335, is needed to confirm the bullish breakout.
Disclosure: The author does not hold cryptocurrency assets at time of writing.
Bitcoin image via Shutterstock; charts by Trading View