Bitcoin price stabilizes after dropping to its lowest price since October 25. The following looks at what could happen next from a technical point of view.
November 20, 2019 | AtoZ Markets – The cryptocurrency market has extended losses this week. In November so far, the digital currencies have lost close to $35 billion. Since the massive surge on October 25-26, prices have dropped toward the 2019 H2 lows. Bitcoin almost hit $8,000 earlier this week. However, there has been a bit of stability today as short term speculators look at which direction the next flow will be. Ultimately, Bitcoin price is now around a support zone after breaching the $8,400-8,500 support zone. The premier cryptocurrency will be on course to hit the $7,300 low if the sell-off continues below $8,000 psychological level.
Top 5 coins performance statistics
Let’s take a look at the performance of the top 5 coins listed on Coinmarketcap. The market is generally quiet today. Cryptos are trading around their daily opening prices. Meanwhile, in the last 7 days, the losses have been significant ranging from 6% to 14%. Furthermore, in the last 30 days, Bitcoin and Ripple are in 1.3% and 14% losses respectively (at the time of writing), while BCH and Ethereum have gained 2.9% and 1% respectively. However, LTC is around the breakeven level. Bitcoin remains the obvious leader in the last 12 month and 2019 YTD followed by Litecoin and Ethereum. BCH has shed 5% in the last 365 days while Ripple has shed 40% to remain at the bottom of the top 5 performance table.
Bitcoin might hit $4,500 before May: Analyst
A crypto analyst and statistician Willy Woo has predicted that the current price dip will almost go as deep as the 2018 bearish market. In a live YouTube discussion with crypto trader Tony Vays on Wednesday, Woo predicted that this year bearish cycle could go as deep as 71%. This would see Bitcoin drop to $4,500 before May 2020 reward halving. Meanwhile, many analysts have predicted that a genuine bullish reversal would happen around that time. However, Woo believed that time is running out for the bearish phase due to the closeness of the halving.
Any reversal signs as Bitcoin price stabilizes?
At the beginning of the week, an ending diagonal reversal pattern completed at $8,500. However, there was no proper bullish breakout for confirmation. Eventually, the pattern was violated as the price dipped further. In the last update, a similar pattern also emerged but there was no price commitment. The chart below shows how the Bitcoin price stabilizes around $8,000.
The chart above shows that there is no reversal signal yet. Bitcoin price could dig deeper to $7,800-7,500. If we have a significant break above the channel afterwards, we might see a reversal or a minor bounce to $9,000-9,500. However, if the price drops below the $7,300 low, it may head to $5,000-5,500.