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Bitcoin Trading Lower: Is There Potential for More Downside?

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Written By: Eno Eteng (MSTA)

Oct 23, 2019, 15:03 BST 15:03

bitcoin BTCUSD

Summary:

Bitcoin (BTCUSD) is in danger of further downside as the support level of 7707 has been breached. Additional confirmation is needed to confirm breakdown.

Bitcoin (BTCUSD) has just pushed below the critical 7707 support level as the floor of the range of the last three weeks seems to be giving way. However, there needs to be a definitive close below this level by a 3% penetration (weekly candle), or a double candle close (daily chart) to confirm the downside break.

The cryptocurrency market is undergoing a massive selloff this Wednesday as more and more cryptos are shedding weight. Bitcoin Cash, Ether and Ripple are all down as well in their pairings with the USD.

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Updated Outlook for Bitcoin (BTCUSD)

BTCUSD’s immediate support at 7707 is under serious threat. The daily chart also shows us support levels at 6950 (23.6% Fibonacci line) and 5950 (lows of November 5/6, 2017 and February 4 2018). Therefore, a drop below 7707 could really be Antipodean in nature and could really hit the crypto market hard.

If the 7707 is able to still hold firm (i.e. if the time/price filter breakout parameters are not met), we can expect further and more frequent tests of this area.

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.