Technical Analysis: The price of Bitcoin rests on the $ 9,000
Bitcoin continues to maintain the rebound obtained after the explosion of volatility experienced on October 25. Will it continue to rise?
On October 25, he began one of the most volatile movements in the crypto market so far this year. The price of Bitcoin managed to jump from a minimum of $ 7,400 on day 25, to a maximum of $ 10,350 on day 26; a movement that caused a positive performance of more than 40% in a few hours.
Then, he began to back off and quickly touched the $ 8,894. Despite this, the positive performance has been maintained, and is currently consolidating over a strong support zone near $ 9,050, and a neighboring resistance zone at $ 9,300; above it you can also see another important located at $ 9,500.
If the consolidation support zone is still respected, we could see BTC reach $ 9,500 with ease, and with the possibility of continuing to climb to the area near $ 10,000; Here are the reasons for this projection:.
Bitcoin price technical analysis
The strong explosion of volatility also created a significant increase in the volume of purchases, as is normally the case. After this event, the price of Bitcoin began to consolidate, and with it began a constant decrease in volume.
In this way, buyers remain in command, so a close upward momentum is not far-fetched; However, I still doubt that it is the one that causes the start of the bullish rally, and we will see this later.
In addition, the price of Bitcoin is very cleanly respecting a bullish crossing made by the exponential moving averages of 8 and simple 18; currently functioning as excellent dynamic supports, and that seems not to want to break at the moment.
Meanwhile, the 200 period moving average is below the price after being broken on October 26; also supporting a bullish movement, and being respected with candles leaving good bearish rejection.
Short-term bearish scenario of the price of Bitcoin
In a projection made on Tuesday, October 29, I indicated the possibility of seeing the price of Bitcoin going back to the nearest support located at $ 8,820, and probably up to $ 8,650.
Indeed, the price continued to fall from where it was forecasting; however, he ran into a support zone created by the immediate setback that caused the rise to $ 10,350; an area that is postponing a deeper setback, and that will probably let us see Bitcoin again about $ 9,500 in the very near future.
If an effective breakdown of the support zone near $ 9,050 occurs, we will see Bitcoin fall towards levels like those expected in the projection published on October 29; a fall that could intensify violently if it continues to generate effective support breaks.
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Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.