Bitcoin prices (BTCUSD) were down by 3.39% at the time of writing as traders seem to book profits on last week’s sharp price gain. From their October lows of $7297.92, Bitcoin prices gained by near 42% in a span of just a few days. Bitcoin bulls also failed to takeout the October 20 high of $10961, leaving the downtrend from the June high of $13861 intact. In the very short-term, the price has given back a bit more than 38.2% of the gains from the October low to the October high, and the next support level is the 50% correction level at $8829, followed by the 61.8% correction level at $8475.
Around the 61.8% correction level at $8475, we also find the October 9 high of $8700, and I suspect bullish traders might try to carve out a higher low between $8475 and $8700 to follow-through on last week’s gains. If that fails, there is a risk that Bitcoin prices revisit their October lows at $7297.92.
The outlook for many other cryptocurrencies is the same. As an example Bitcoin Cash is currently trading at $287 and is capped by the neckline of a significant bearish head and shoulders pattern. For more on this read: BCH: Bitcoin Cash Soars by Near 10%, Downtrend Remains in Play