Bitcoin (BTC) Price Forecast, Analysis and Chart:
- Supportive 200-dma under threat.
- Bitcoin looking to fill the gap.
If you are interested in trading the cryptocurrency market, we have produced a Day Trading Guide to Bitcoin and Other Cryptocurrencies to help you better understand this highly volatile asset class.
Bitcoin Price Outlook
Bitcoin is testing its recent lows as a range of technical indicators begin to weigh on the cryptocurrency. The recently supportive 200-day moving average is now under threat and a close below here – currently at $9,183 – would produce a short-term negative signal. The price is also pushing back through a cluster of recent lows and a break and close below the October 26 low at $8,890 would be another bearish sign.
This October 26 low is also important as it is part of a gap on the chart between the October 25 high at $8.870 and the previously mentioned October 26 low at $8,890. For Bitcoin to turn bullish again, this gap needs to be filled. One mildly bullish signal comes from the 20-dma crossing above the 50-dma, indicating short-term bullish momentum.
If Bitcoin does turn lower, then a re-test of the October 23 multi-month low at $7,300 may occur although with pockets of support all the way down, this low may prove to difficult to achieve. A break above the 200-dma leaves a retrace back to $9,930 as the first target.
Bitcoin (BTC) Daily Price Chart (June – November 8, 2019)
IG Client Sentiment shows that how traders are positioned in a wide range of assets and markets. Retail customers are 80% net-long Bitcoin, a bearish contrarian bias. However, recent daily and weekly positional shifts give us a bullish outlook.
Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
What is your view on Bitcoin (BTC) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.
