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October 16, 2019 @ 23:42 +03:00
Bitcoin (BTC) price has continued its multiple-day slide, dropping 5.3% over the past two days and 9.6% from it’s $8,800 high 5 days ago. While Bitcoin bears are celebrating, the price remains range-bound, as can be seen clearly on the daily chart. Bitcoin price has been trading in this range since September 25th, the day after the large drop from $10,000.
Bulls will be looking for a break above the range to signal likely price appreciation, while the bears have their eyes on the bottom for a breakdown and further downside. The price closed below the equilibrium (dashed centerline) of the range yesterday, leading to further depreciation and a likely trip to the range lows.
Bulls will look to the monthly and weekly chart for signs of likely continuation towards higher highs, noting the key support level of $7,777 mentioned on the monthly and the hidden bullish divergence and 50 EMA support on the weekly chart. Holding these levels maintains the macro bullish trend.
A break and close below the key monthly $7,777 level and confluent range lows would be bearish and would likely lead to a significant movement to the downside. Bears will continue to watch the ascending channel or the bear flag that has formed on the 4-hour chart for signals that price will continue to drop.