Bitcoin (BTC) Price Analysis: Oversold But Bearish Sentiment Remains

BITCOIN (BTC) PRICE FORECAST, ANALYSIS AND CHART:

October multi-month low may not hold.
Strong support levels difficult to identify.

If you are interested in trading the cryptocurrency market, we have produced aDay Trading Guide to Bitcoin and Other Cryptocurrenciesto help you better understand this highly volatile asset class.

BITCOIN (BTC) – PREPARING FOR THE NEXT LEG LOWER?

We have warned over the last couple of weeks that Bitcoin (BTC) was looking weak and that a breakout from its restrictive range/s was on the cards. Various technical indicators have been flashing warning signals and on Thursday the market finally gave way and slumped all the way down to the $7,400 area.

Bitcoin (BTC) Remains Under Technical Pressure as $8,000 Looms

Bitcoin (BTC) Price Struggle Continues, Mired by Conflicting Signals.

The daily chart shows the short-term and long–term outlook for Bitcoin diverging with the market currently looking over-sold, using the CCI indicator. This may see prompt a short-term up tick, but the overall sentiment is still seemingly negative and with little in the way of strong support, lower prices are likely. The downtrend off the late-June high at $13,850 is now back in play after the recent break-out and if this trendline resumes its resistance, then BTC sentiment will remain negative.

The recent multi-month low on the October 23 candle at just over $7,300 remains the first level of support but a break and close below here could see BTC slide below $7,000 and back to the $6,400 – $6,500 area. We identified the death cross formation – 50-dma trading down through the 200-dma – a couple of weeks ago and it now looks likely that the 20-dma will drop below the 50-dma, highlighting the short-term weakness in the market. With Bitcoin trading available on a 24/7 basis, this weekend’s price action will be interesting to watch.