Bitcoin (BTC) analysis - do the bears push the price to $8,000?

By darianosch | crypto analysis | 11 Oct 2019


At the time of writing, Bitcoin (BTC) uses a price of $8,360 at Bitstamp. Are we bearish again? Read the technical analysis.

Bitcoin (BTC) daily overview

The daily overview shows that Bitcoin closed itself very ugly yesterday (figure 1 below, red.) As it happens we're dealing with a Doji star candlestick.

When Bitcoin also closes in red today, the Doji star will be confirmed and it doesn't look good for Bitcoin.

For the rest it doesn't look good for Bitcoin either, as we're again closed below the DMA-200 (Daily Moving Average).

This in combination with the Elliott Wave theory, of which it is very likely, that the wave 4 has ended and we now start with the wave 5.

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Figure 1: bitcoin (BTC) daily chart

Bitcoin 4-hour chart

On the 4 hour overview you can clearly see that Bitcoin had made a big move up, with a quick crash as a result (figure 2 below, red.).

In my opinion the crash we see in Bitcoin has to do with the considerable resistance which is located in this zone. After another rejection in this zone, the sentiment seems to be switched.

Also the STOCH Indicator on the 4 o'clock timeframe looks tired and because of the big sell-off it is now also confirmed downwards.

Another good thing to see on the 4 hour time frame is that we fell out of its uptrend channel.

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Figure 2: bitcoin (BTC) 4 hour chart

The bearish candlestick, on the 4 o'clock timeframe, says a lot in my eyes. A not a good signal at all! (figure 3 below, ed.).

It looks like we're going to fall a little further today, to look for the $8.060 to $8.166 zone. From there we could possibly see a bounce.

All in all, it doesn't look good. That's why the short term and long term insights are shown below.351665157-926f01a6e1923ae9eb92d4b00b5ab531808474e1f639301c719e18401102a908.png

Figure 3: bitcoin (BTC) 4 hour chart

Support levels

  • 8.050 dollar (short term)
  • 8.050 dollar (short term)
  • 7.850 dollar (short term)
  • 7.550 dollar (short term)
  • 7.370 dollar (short term)
  • 7.100 dollar (short term)
  • 6.800 dollar (short term)
  • 6.500 dollar (mid term)

Resistance levels

  • 8.500 dollar (short term)
  • 8.650 dollar (short term)
  • 8.800 dollar (short term)
  • 9.100 dollar (mid term)
  • 9.500 dollar (mid term)

Is there a firm bounce coming?

At this moment Bitcoin may fall a little lower today (Friday) to look up the $8,000 - $8,160 zone (Figure 4 below, ed.).

In this range I expect to see a solid bounce towards the $8.500 to $8.600 zone.

However, we will have to keep a close eye on the price action for this. Because the weekend is also coming up and in the weekend we often see some thinner orderbooks.

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