Βitcoin prices (BTCUSD) are lower today, giving up 0.94% on the day, and trading at $8,294, close to a three-month low as bitcoin is trying to break above the 200-day moving average. Today, Bitcoin capitalization stands at 149.30 billion, while the capitalization of the 100 biggest cryptocurrencies is above 220 billion.
In the short-term, the outlook for bitcoin prices is bearish, as the price trades below all daily moving averages. Immediate support for bitcoin prices stands at today’s low of 8,251, and then at 7,940, the low from September 29th. A break below $7940, might drive the price down to $7,730, the most recent swing-low. Some technical analysts will argue that the move down will expand to the height of the triangle and that the price might reach the $5,000 mark as we can see in the chart below. The critical point is the 200-day moving average at $8,483; a move below will attract more bears to join the downward move. If the bitcoin price breaks above the 200-day moving average then I will not be surprised by a move up to $9.350, the triangle support line which now has turned into a resistance.
On the upside, BTCUSD strong resistance now stands at $8,419, today’s high, and then at $9,350 the triangle support line. Bulls may add to long positions if BTCUSD breaks above $9,350. I suspect that the take profit target of traders will be the $10,220 level, the triangle resistance, while a protective stop might be placed at 200-day MA at 8,483. Bears on the other hand, will probably take a bet and enter a short position if BTC breaks below the recent low at $7,730. Download our latest quarterly market outlookfor our longer-term trade ideas.
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