Bitcoin Price Faces Drop to $8.5K After Consecutive Weekly Losses

Bitcoin Price Faces Drop to $8.5K After Consecutive Weekly Losses

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’s consecutive weekly losses and multiple failures at key resistance have shifted risk in favor of a drop to around $8,550 and perhaps as low as $8,000.

Daily chart indicators have turned bearish for the first time in over a month, supporting the case for a deeper decline.

A high-volume move above $9,335 (descending trendline from 2019 high) is needed to revive the bullish view.

Bitcoin is looking south after back-to-back weekly losses and multiple rejections at key price resistance.

The top by market value fell 2.6 percent and 3 percent in the weeks ended Nov. 3 and 10, respectively.

Importantly, BTC has also failed for three straight weeks to close (Sunday, UTC) above the 3.5-month trendline sloping downwards from the 2019 high of $13,880. Acceptance above that hurdle would have meant a revival of the bull market set in motion by a solid break above $5,000 in early April.

The inability to pass that level (currently around $9,335) has weakened the bullish case put forward by the high-volume rise from $7,300 to $10,300 on Oct. 25–26.

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Markets usually test dip demand after multiple rejections at key resistance and bitcoin is already feeling the pull of gravity. At press time, the cryptocurrency is trading at $8,680 on Bitstamp, representing a 1 percent drop on a 24-hour basis.

Losses could be extended further with the 200-day moving average support now breached. The barometer of long-term market trend is currently located at $9,236. Other technical indicators have also turned bearish over the weekend.

Weekly chart

BTC is losing altitude, having faced rejection at the descending trendline for three straight weeks.

The 14-week relative strength index (RSI) remains in bearish territory below resistance at 53.00. It’s worth noting that the 53.00–55.00 range acted as a strong support throughout the 2016–2017 bull run.

Hence, a move above 55.00, if and when it occurs, could be taken as a confirmation of bull market.

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Monthly and daily charts

Bitcoin’s failure to hold above the descending, bearish 5-candle MA (above left), as represented by the October candle’s upper wick, is translating into a price drop, as expected.

The MACD histogram on the daily chart (right) has crossed below zero over the weekend and is currently signaling at its most bearish since Oct. 3 with a -59.00 reading.  The RSI is currently bearish below 50.

BTC has also found acceptance below the 200-day MA – a level that acted as strong support in the nine days to Nov. 7.

All-in-all, BTC appears on track to test and possibly breach the 50-day MA at $8,552. A violation there would expose the psychological support of $8,000.

On the higher side, a convincing move above the 3.5-month descending trendline hurdle, currently at $9,335, is needed to confirm a bullish breakout.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

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