WEEKLY ANALYSIS (NOV 10- NOV 16)
This week, BTC prices were struggling to tightly consolidate itself closer near 10-SMA. The prices gained high momentum and broke past $9000 with a sudden jump in the trading volume on Nov 10 but it didn’t stay for long as bulls were saturated maintaining the balance. The prices are still under a lot of pressure between $8500 and $8700. The prices could correct itself because bulls have will come in the scenario and the prices will break the resistance at $8700. increase in selling pressure below the $8,880 support area against the US Dollar. Moreover, the BTC price settled below the $8,700 pivot level and the 100 simple moving average (4-hours). The markets suffered steady losses when the prices dropped twice in this week and broke the $8350 support on Nov 15.
According to newsbtc.com analyst Ayush Jindal, It is currently consolidating losses above the $8,400 level. Adding to this, BTC is trading near the 23.6% Fib retracement level of the recent decline from the $8,700 high to $8,300 low. Bitcoin is going through a period of consolidation and sits in the middle of the trading range made over the last six weeks. Moreover, there was a break above the 50% Fib retracement level of the recent decline from the $8,800 high to $8,450low. Finally, there was a spike above the $8,650 resistance area.
The bulls must again breakdown and hold above the $9000 price mark for greater upside. Daily price action is also moving within a bullish flag, subject to a potential breakout higher. However, If there is another break down below the $8,450 level, the price may perhaps continue to move down below $8,400. The next major support is near the $8,300 and $8,200 levels, where the bulls are likely to appear. Apart from the trendline support Bitcoin fill seek refuge at $8,500, $8,400 and $8,000. Since the powers of bears still hold strong in the current runs, the extent to which BTC’s price may drop in the long run still remains unknown. The market expects bulls to return and reverse the prices back to $9000 and then finally, $10,000. The $10,000 resistance still looks distant by at least 7–9 weeks but you never know, when BTC will show a 25–30% surge. For now, Bitcoin selling pressure continues to hinder BTC reversal below the descending trendline resistance.
The spot price is currently being supported by the 50-day moving average after breaking below both the 20- and 200-DMAs in the last week. The 50-DMA broke below the 200-DMA — a bearish death cross — at the end of October, indicating lower prices ahead. If Bitcoin breaks and closes below the 50-day moving average, then a re-test of the recent $7,300 low is back on the cards. The RSI for BTC/USD is currently correcting higher, but it is drowned below the 50 levels. A drop into the oversold could be a cause for the next reversal above $9,000. The next key resistance is near the $8,800 level. The main resistance is still near the $8,900 level and a connecting bearish trend line on the same chart. The MACD for BTC/USD shows the same indications are slowly losing momentum in the bearish zone.
Other altcoins haven’t performed well either except Binance coin which most of the time comes out as an exception in the middle of the red zones of other cryptocurrencies. Binance Coin has witnessed substantial growth which has led the cryptocurrency to surge above $20 following a recent price break. Ethereum is showing a very strong correlation with Bitcoin in recent weeks. Ethereum has the ability to break its chains and push an upbound move after its brief drop below $180 signals. This is a strong short-term support level that will likely continue to hold so long as Bitcoin doesn’t incur any significant selling pressure in the near-term. Ethereum’s ability to stabilize within the lower-$180 region comes as it faces increasing on-chain volume and it may help to break the $185 mark. Litecoin has witnessed a lot of price reductions over the past three days due to a significant correction which is making the bears gain control of the market. The same was Ripple in the past few days, which mostly followed a bearish pattern below the $0.2800 and $0.2750 supports against the US Dollar. Moreover, XRP/USD settled below the $0.2750 support area and the 100 hourly simple moving average.
Nov 17, 2019