- Bitcoin repeated failure to produce a strong bounce from key support shows bullish sentiment has fizzled somewhat.
- Failure to hold above the MA bearish on the long term charts indicate the scope for a deeper downturn.
- BTC risk fell to $ 8,800 in the short term and could extend decline to $ 8,500.
- A high volume breakout triangle on the 4 hour chart will be bullish, although that looks unlikely at press time.
Bitcoin is struggling to revive the rally stalled and could soon be rolled into a deeper level of support below $ 9,000.
Cryptocurrency take over bid near $ 7,500 on Oct. 25 and jumps to $ 10,350 the next day, according to data Bitstamp. Runaway into five figures, however, was short-lived, because the price quickly fell back under $ 10,000 on October 28 and has largely remained stuck in a narrow range of $ 9,600- $ 9,000 since.
The downside has been limited so far by the 200-day average – a barometer of long-term market trends. A pullback is usually reversed from key support levels like the 200-day MA, especially if volumes are low, as has happened recently.
So far, however, cryptocurrency have failed to produce a strong bounce from support, despite the positive seasonal.
Prices jumped more than $ 400 to $ 9586 from the Supreme Court on November 4 only for the benefit of giving up on the next day. A similar weak bounce has been observed in the last 24 hours or more with the price rose to $ 9,450 just to dive back to lows near $ 9,200.
shallow bounce indicates bullish sentiment generated by a sharp rise to $ 10,350 has been weakened and the market may test demand by revisiting levels dip below $ 9,000.
In writing, BTC changed hands at $ 9170 on Bitstamp, representing a decrease of 1.50 percent on a 24 hour basis.
BTC upside has been limited by a trendline connecting the June 26 and August 6 lows several times in the last few days. Meanwhile, cryptocurrency been testing the 200-day MA support five times in eight days.
trading volume has fallen sharply since the recent drop-off of $ 10,350. Low volume setbacks are often reversed, but a decent bounce continues to remain elusive.
All-in-all, cryptocurrency looks set to decline to former resistance-turned-support at $ 8,800.
The shadow on the monthly candle is a rejection of MA 5-month high at $ 9265. Failure to hold above the average fall is usually translated into a decrease in the price of the famous. major support seen at 10 months MA rise near $ 8,000.
4 hours graph
Triangle contractor visible above it may be broken to the lower side, as suggested by the daily and monthly indicators.
ascending 100- and 200-candle, currently at $ 8928 and $ 8558, respectively, could offer support if the drop out of the zone confirmed.
A bearish outlook will be undermined if a triangle ends with a high volume breakout bullish. In that case, a retest of $ 10,000 could be seen.
Disclosure: The author does not hold cryptocurrency assets at time of writing.
Bitcoin image via Shutterstock; charts by Trading View