Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
Bitcoin Technical Outlook: Down But Not Out

Bitcoin Technical Outlook: Down But Not Out

Manish Jaradi, Strategist

Bitcoin, BTC/USD - Technical Outlook:

  • Bitcoin’s failure to extend lower recently is an encouraging sign for bulls.
  • Has BTC/USD capitulated?
  • What are the possible scenarios at the key signposts to watch?

Cryptocurrency Trading
Cryptocurrency Trading
Recommended by Manish Jaradi
Get Your Free Introduction To Cryptocurrency Trading
Get My Guide

BITCOIN SHORT-TERM TECHNICAL OUTLOOK - NEUTRAL

The apparent failure of Bitcoin to extend its losses in the past two weeks could be an early sign that cryptocurrencies may have run their bearish course for now.

Granted, price action is still unfolding and BTC/USD could still embark on another leg lower. However, the stalling of the down move recently keeps alive the possibility that the early-November decline could be ‘capitulation’. If this were indeed the case, a base-building process in BTC/USD could be in play – a relatively high probability scenario highlighted on November 15.

BTC/USD Weekly Chart

image1.png

Chart Created Using TradingView

Momentum on the weekly chart didn’t make a new low as spot fell below its June bottom of 17590. Momentum is indicative of force, and when support levels are broken with stronger downside conviction, this generally signifies further weakness in price. The 14-week Relative Strength Index (RSI) is now above its June low, suggesting positive momentum divergence (a new low in price associated with a higher low in momentum).

BTC/USD Daily Chart

image2.png

Chart Created Using TradingView

One of the signposts to watch for Scenario 1 to play out would be a break above immediate resistance at the mid-November high of 17170. Such a move would indicate that immediate downward pressure is beginning to ease. A stronger signal would be a rise above the November 10 high of 18140, which could bring into play the 5 November high of 21470, near the 200-day moving average.

The second scenario, and a relatively low probability one, would see BTC/USD extend its weakness initially toward the 2019 high of 13895, and possibly lower. A decisive break below the November 9 low of 15510 could be the first signpost to watch for the bearish scenario to unfold.

How to Trade the "One Glance" Indicator, Ichimoku
How to Trade the "One Glance" Indicator, Ichimoku
Recommended by Manish Jaradi
How to Trade the "One Glance" Indicator, Ichimoku
Get My Guide

--- Written by Manish Jaradi, Strategist for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES