Looking at the weekly chart, BTC has been regularly creating Lower Lows every month after reaching the 2019 High. It didn’t fail to create another October Lower High following the Chinese FOMO when Xi Jinping positively announces its support in blockchain technology. However, It was short-lived as BTC continued to plunge after the announcement. And as of writing, BTC broke the June 2019 support area last week (coincidentally, the support area before the Chinese FOMO happened) forming a massive red candle and has created a new 6 months low. From last month’s high, BTC has already dropped to -33% to its opening this week.
Looking further in the Daily chart, EMAs 70(white) and 280(Green) are about to converge and form a death cross. The current fence that’s holding BTC from plunging even more as of now is the 2018 Major Support (6500-6000). Price might react on this level. It might range for a bit between June 2019 Support and the 2019 Major Support. However, this is only one of the cases. Looking at the MACD indicator, bears still have the upper hand and is still gaining momentum. Better yet, Let’s just observe these marked levels.
Where is the Bottom?
We don’t know for sure where the bottom price is. However, we can actually say that this downtrend ends when we can see the price breaks relevant Lower Highs, forming Higher Highs and Lower Lows in the process, especially in the higher timeframes.
Looking further in the Daily chart, EMAs 70(white) and 280(Green) are about to converge and form a death cross. The current fence that’s holding BTC from plunging even more as of now is the 2018 Major Support (6500-6000). Price might react on this level. It might range for a bit between June 2019 Support and the 2019 Major Support. However, this is only one of the cases. Looking at the MACD indicator, bears still have the upper hand and is still gaining momentum. Better yet, Let’s just observe these marked levels.
Where is the Bottom?
We don’t know for sure where the bottom price is. However, we can actually say that this downtrend ends when we can see the price breaks relevant Lower Highs, forming Higher Highs and Lower Lows in the process, especially in the higher timeframes.
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Weekly Chart >>
