Bitcoin’s unsuccessful attempts to deliver a strong bounce from key support indicate the raising of a bullish sentiment somehow. Furthermore, failing to hold above a bearish moving average on the longer-term chart indicates signals for a lower drop.
The above-mentioned situation may lead to the assumption that BTC risks falling to $8,800 in the short-term and that decline may extend to $8,500 as well. Moreover, a high-volume triangle breakout on a 4-hour chart might be bullish, although that seems unlikely at press time for now.
Bitcoin is struggling to recover its hampered rise and could soon move over to lower support levels below $9,000.
The downturn has been defined so far by the 200-day moving average which can be taken as a gauge of long-term market trends. A pullback usually converts from key support levels like the 200-day moving average, particularly when volumes are weak, which was similar to what we’ve had recently.
The top cryptocurrency market hit a bid near $7,500 last October and jumped to $10,350 some days after, according to Bitstamp data. Breaking into five figures was pretty brief, however, since the prices quickly dropped back below $10,000 figure on October 28th namely. Nevertheless, the bitcoin price remained mainly trapped in a narrow range of $9,600-$9,000 since then.
The cryptocurrency has repeatedly failed to make a strong bounce from the support, despite positive seasonality so far.
Prices jumped more than $400 to $9,586 from the moving average on Nov. 4th only to bounce back the next day. A similar weak bounce has been observed in the last 24 hours or so with prices soaring to $9,450 only to sink back to lower values near $9,200.
These slight bounces symbolize a weak bullish sentiment being generated by the energetic rise to $10,350 assuming the market may now test lower ranges by checking levels below $9,000.
As of today, BTC is changing hands at $9,170 on Bitstamp, realizing a 1.50 percent drop on a 24-hour basis.
Author: Ben T.
The views and opinions expressed here are not to be taken as a financial advise