Bitcoin Price Analysis | November 8, 2018

Bitcoin Price Analysis | November 8, 2018

Resistance levels: $6,509, $6,543, $6,609

Support levels: $6,439, $6,356, $6,286

BTC/USD Medium-term Trend: Bullish

BTC is in a bullish trend on the medium-term outlook.  The Bulls return to the BTC market was noticed on October 31, when a strong bullish engulfing candle, formed at the $6,208 price level below the support level of $6,286 closed above the 21-day EMA which act as a dynamic support and resistance. The market has been making “Higher Lows” (HL) and “Higher Highs” (HH) as one of the characteristics of an uptrend market. It was bullish yesterday at the opening of the market, confirmed by the formation of a strong bullish candle at the support level of $6,439 before it started consolidation below the resistance level of $6,509.

Today, the 4-Hour opening market candle is bearish; it is to retest the broken level so as to continue its uptrend unless the uptrend line drawn is broken downside.

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In case the bears were able to push the BTC price to break the support level of $6,439 and the trend line downside then, BTC will find its low at $6,356 support area, but should the support level of $6,439 hold and the price bounce; BTC price will find its high at the resistance level of $6,509.   

BTC price is above the 21-day EMA and 50-day EMA indicating uptrend movement. However, the Stochastic Oscillator period 14 is above 40 levels with the signal lines point downward which indicates a sell signal.

BTC/USD Short-term Trend: Bearish

BTC is in bullish trend on 1-Hour chart. At the early market yesterday the cryptocurrency was bullish with the formation of bullish candles that broke up the resistance level of $6,509 before the bears rejected a further increase in price. The bears pushed the price down below the dynamic support levels of 21-day and 50-day EMA, which indicates the sell signal.

The Stochastic Oscillator period 14, is below 20 level s (overbought region) which connotes that the bulls may take over the market soon for the coin to resume its uptrend movement. Should the bears push the price down further to break the support level of $6,439, the coin will have its target at the support level of $6,356.