Bitcoin prices are lower today after a sharp 191 dollar decline at 8 am London time. There is no specific news driving prices lower, but we saw similar declines in other cryptocurrencies. Bitcoin traders have now caused prices to give up 78.6% of their gain from the October low of $7297.96.
The move in October was motivated by the news that the Chinese government was warming up to Blockchain technology, but it looks like Bitcoin traders need more to support prices.
The risk-reward ratio for fresh short positions is weak at current levels as the price is at the final Fibonacci support level, the 78.60% correction level at $7889.97, but also as the price is near the October low of $7297.92.
Don’t miss a beat! Follow us on Telegram and Twitter.
However, on Bitcoin prices sliding below the October low of 7297.92, the price would take out a significant support level, and the price might reach the triangle pattern target of $6520. The triangle pattern target is from the triangle that formed from July until September 2019. If Bitcoin traders manage to keep the price above the October low then the price might be able to reach the 61.8% correction level at $8366, followed by the 50% correction level at $8718.More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Alejandro on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.