Bitcoin Trades Below 9000 on Lack of Upside Momentum
Bitcoin (BTCUSD) continues to lack upside momentum and has found it hard to breach the resistance seen at the 9300 price level. Having touched a weekly high of 9504, BTCUSD is starting to trade below 9000 and looks poised to make a further leg lower.
Bitcoin is now trading at 8963 as at the time of writing. The pair continues to respect the long-term price levels defined by the Fibonacci retracement trace from the swing high of November 2017 to the swing low of December 2018. Price resistance at 9300 represents the 38.2% Fibonacci level and failure to break this level to the upside could open the door for a leg lower to the 8289 former resistance now turned support (red line).
However significant buying interest seems to be found at the 8289 price area, which could show up as a potential bounce on this area to keep the BTCUSD pair in a range.
Going forward, the range of price movement for next week could remain between 8289 (floor) and 9300 (ceiling), with potential for fakeout violations of these levels. We need to see a definitive close of the long term candle with a 3% penetration of the price levels to see price moving out of range.
Therefore, a downside breakoff 8289 could open the door to 7707 (weekly candle lows of October 22/29, as well as November 6/13). On the flip side, a definitive close above 9300 could target 10,907, which is where previous highs of the weekly candles of August 18 and September 1 were found.More content