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