The huge dump that everyone expected following bitcoin’s epic move late last week has yet to materialize. BTC is holding on to most of its gains as it forms another sideways channel. Calls for a return to crypto winter are now beginning to fade as the potential bottoms are rising.
Bitcoin Price Holds Above $9,000
For the fifth day since its monumental surge late last week BTC has held on to most of its gains. It is currently still 25% higher than it was before the huge move and consolidating around $9,300. A brief drop just below $9,100 was quickly recovered to a slightly higher level than this time yesterday.
The four-hour chart shows a golden cross strengthening which is a positive signal that the trend reversal is holding for this time frame. Continuation will result in a reversal of the daily death cross that occurred on the same day that bitcoin price surged 40%.
As that downtrend strengthened the bear calls were intensifying with some even predicting an extreme drop back to last year’s dip of just over $3,000. Now that the technical indicators have all been shaken up by this recent rally, those deep drops are looking less likely.
Trader and analyst ‘Crypto Fibonacci’ has been looking at the longer-term bitcoin price weekly chart noting that the lower limits are rising.
At this point I think Bears can forget all about 3K or below. Best they can get at this point, IMO, is 5k and that price keeps rising every day.
$BTC Weekly Chart.
At this point I think Bears can forget all about 3K or below. Best they can get at this point, IMO, is 5k and that price keeps rising every day.
A bounce off the Lower BB, 61.8 retrace, and a double bottom are not things I would mess with.#BTC #bitcoin pic.twitter.com/rzF3R1Gjhe
— CryptoFibonacci (@CryptoFib) October 30, 2019
Three indicators have aligned at what could be the next bounce to the low side and they’re all over $7,000. Fellow analyst Josh Rager has taken a look at some lower time frames and a tightening range of a few hundred dollars.
Daily support below, while overhead is the weekly and monthly open (resistance) with a break and close above these areas on higher time frames will likely be a signal to move up in the $10ks
https://twitter.com/Josh_Rager/status/1189378662975582209
In terms of market dominance, BTC has crept up a little but still remains below 70% as some of the altcoins are getting greater gains today.
Also notable is the bitcoin price fear and greed index which has spent most of this month in the deep red. It is currently just over neutral at 54 which indicates that hopium has returned to the space for now anyway.
The next move will be critical. A fall back below $9k could see an avalanche of red candles back to support just below $8k. While the opposite would build on this year’s momentum and push prices back over five figures again.
Which way will bitcoin price go this week? Add your thoughts below.
Images via Bitcoinist Media Libary, BTC/USD charts by TradingView, Twitter: @CryptoFib, @Josh_Rager
