Bitcoin Price AnalysisTechnical Analysis

Exclusive Bitcoin Price Analysis November 8 (October 29)


With the price of Bitcoin fluctuating below $ 13,000 yesterday, the coin penis was hit hard and experienced a sharp decline, however, the structure of bitcoin in the macro perspective is still upward.

ToReport Quintel Telegraph: Stock markets across Europe are closed in red, and US markets are also experiencing strong selling pressures. It can be said that investors are afraid that the current global economic recovery will be fragile due to the increase in the number of patients. This growing negative sentiment has also pushed down the price of gold, while the US dollar index has risen.

A survey by Grayscale Investments, a digital currency capital management company, found that the number of investors familiar with Bitcoin has risen from 53% in 2019 to 62% this year. The poll also shows that about 55% of respondents have shown interest in investing in Bitcoin this year, up from 36% in 2019.

With more institutional and micro-investor participation, the digital currency market is less likely to be manipulated, and this could lead to more market capitalization. Paying attention to strong support levels helps traders make more informed decisions when an asset price enters or is about to correct.

It is possible to see lower price levels this week, given the possibility of the biggest reduction in the difficulty of the Bitcoin network in the last 5 months. Data from the BTC.com source estimates that this value may decrease by 8.3% over the next four days in the next automatic reset of network hardness.

After June and the recent hawking of bitcoin, price movements have been slow, accompanied by the difficulty and hash rate of the network. After that, with the increase of both criteria, the price has also recovered. In the same way, the well-known theory that price follows the basic principles, especially of humanity, is reinforced.

We go to the important price levels in the chart and its possible future movements. In the previous specific technical analysis of the price, we mentioned the possibility of price correction after hitting the resistance area of ​​11,600 to 11,700. The price hit this area very carefully and after the correction, it was pulled down to near the support area in the analysis (at $ 11,200, which is slightly higher than the $ 10,870 to $ 11,000 area). In previous analyzes, we also mentioned the possibility of a price jump after breaking the resistance of $ 11,500.

Now, in addition to the fundamental factors, the technical elements also warn of the price hitting the heavy resistance and the possibility of starting to correct. For example, if we look at the logarithmic price chart in the weekly timeframe, we see it hitting the 78.6% Fibonacci retracement level of the specified wave at $ 13,200 and below the price uptrend (red line).

Exclusive Bitcoin Price Analysis November 8 (October 29)
Bitcoin price chart in US dollars in weekly timeframe

In the arithmetic chart, we see a price conflict with the correction of the Fibonacci retracement level of 61.8% of the big downtrend and the 141.4% Fibonacci retracement level of the recent downtrend at $ 13,330. All of these factors indicate the strength of the $ 13,200 to $ 13,330 resistance area. Above this area, the price is likely to fluctuate up to $ 14,140.

Exclusive Bitcoin Price Analysis November 8 (October 29)
Bitcoin price chart in US dollars in weekly timeframe

In the daily timeframe, we also see price fluctuations on the midline of the drawn channel. Given the negative divergence formed on the Relative Strength Index (RSI) indicator, if the price loses its current levels and midline support, it could be adjusted to the $ 12,150 to $ 12,300 support area. Below this level is the next price support at 11,500.

Exclusive Bitcoin Price Analysis November 8 (October 29)
Bitcoin price chart in US dollars in daily timeframe

Returning to the weekly timeframe, the price pullback to the neckline of the reverse head and shoulder pattern makes sense. It should also be noted that this pattern can not be considered as a long-term signal until it closes 10% above the neckline (currently 7%) as it will be possible to break the pattern.

Exclusive Bitcoin Price Analysis November 8 (October 29)
Inverted head and shoulders pattern in the price chart of Bitcoin in US dollars in the weekly timeframe
  • Resistances: 13,200 – 13,330 – 14,140
  • Supports: 12,300 – 12,150

In your opinion, is it cheating us on the future state of the world or the US presidential election, given that it has been on a downward spiral and has quickly reached and engaged with these key resistances? We have to see. Finally, as we have mentioned this important principle many times in the past, control your risk in the coming weeks by optimally adjusting your loss limit, and manage your capital by stepping in and out of support and resistance.

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