Bitcoin Prices Capped at $10355, $8475 Might Offer Support

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Written By: Alejandro Zambrano

Oct 30, 2019, 11:01 GMT 11:01

Bitcoin BTCUSD

Summary:

Bitcoin prices (BTCUSD) were down by 3.39% at the time of writing, as traders seem to book profits on last week’s sharp price gain.

Bitcoin prices (BTCUSD) were down by 3.39% at the time of writing as traders seem to book profits on last week’s sharp price gain. From their October lows of $7297.92, Bitcoin prices gained by near 42% in a span of just a few days. Bitcoin bulls also failed to takeout the October 20 high of $10961, leaving the downtrend from the June high of $13861 intact. In the very short-term, the price has given back a bit more than 38.2% of the gains from the October low to the October high, and the next support level is the 50% correction level at $8829, followed by the 61.8% correction level at $8475.

Around the 61.8% correction level at $8475, we also find the October 9 high of $8700, and I suspect bullish traders might try to carve out a higher low between $8475 and $8700 to follow-through on last week’s gains. If that fails, there is a risk that Bitcoin prices revisit their October lows at $7297.92.

The outlook for many other cryptocurrencies is the same. As an example Bitcoin Cash is currently trading at $287 and is capped by the neckline of a significant bearish head and shoulders pattern. For more on this read: BCH: Bitcoin Cash Soars by Near 10%, Downtrend Remains in Play

Written By: Alejandro Zambrano

Alejandro Zambrano combines extensive professional experience and a pragmatic attitude to trading, building clients’ understanding of the markets and the rationale behind investing. Zambrano was the Chief Market Strategist of the FCA regulated broker, Amana Capital. Prior to that, he was also the Head Analyst at FXCM’s London research desk. Interact with Alex via Twitter at @AlexFX00.