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Bitcoin

Bitcoin Price Analysis: Slips to One-Month Lows Below $8K

November 21, 2019 at 5:13 PM | By Jit Sutradhar Markets

Look

  • Decrease Bitcoin to lows four weeks have confirmed the bearish continuation pattern on the hourly chart.
  • Indicators on the chart three days calling for a decline in the average key support at $ 7714.
  • A bounce higher volume than the range of $ 7,751- $ 7714 support will neutralize the bearish setup immediately.
  • A lesser offense-top setup with a move above $ 8631 is needed to confirm the reversal bull.

After going down to one-month lows below $ 8,000, bitcoin is now targeting the first test of the key support average, now at $ 7714, since April.

On cryptocurrency by market value fell more than 2.4 percent at 60 minutes to 08:00 UTC today to hit a low of $ 7875 – a level last seen on October 25, according to data Bitstamp. This decline marked downside break of 48 hours a narrowing price range seen above $ 8,000.

Especially, with the slide to levels below $ 7,900, bitcoin has removed 80 percent of the rally from $ 7,293 to $ 10,350 seen in the second half of October.

On the basis of month-to-date, cryptocurrency she now reported losing more than 13 percent. Furthermore, this cryptocurrency traded in the red for the fourth straight week.

Dismal performance contrary to the positive seasonal factor: bitcoin has put on a good show in November in six of the last eight years. In particular, the price obtained for six years in a row in November, from 2012-2017, before falling hard in November 2018.

Month-to-date large losses also conflicting data that shows the history of picks bitcoin a strong bid six months ahead of the miners reward halving, supply reduction to the next scheduled in May 2020.

That said, the repeated failure to hold above the descending a (bearish) 5 month MA in the first eight days of the month have raised the possibility of a drop to $ 8,000.

Technical charts now call a further decline to the support at $ 7714 – 100-candle moving averages on the chart three days. It will be the first test support crucial average since the end of April.

In writing, BTC changed hands at $ 7920 on Bitstamp, representing a decrease of 1.30 percent on a 24 hour basis.

Hourly and 3-day charts

Hourly-and-3-day-chart

Contractors breakdown triangle visible on the hourly chart is supported by solid gains in trade volumes and indicates the resumption of the downtrend.

The MACD histogram at the three-day chart, indicators are used to identify changes in trend and strength, has dropped below zero, confirming the bearish bias. Meanwhile, the relative strength index reported a 14-day bearish condition by reading below 50.

BTC, therefore, looks set to test the 100-candle three-day MA at $ 7714. Note that the rising (bullish) 10 month MA is also located at $ 7751.

As a result, $ 7,751- $ 7714 is the key to a range of support for the BTC. A strong bounce from there to levels above $ 8,000 would neutralize the immediate bearish view.

8-hour chart

8-hour-chart

The series of lower highs and lows seen in graph 8 hours showed path of least resistance is to the downside.

A short-term bullish reversal will be confirmed if and when the price rises above 17 Nov high of $ 8631, to cancel the bearish lower-top setup.

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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