Bitcoin price drops for the fourth day: Market Analysis

Overview:

  • Bitcoin has recently been in talks due to price drop below $60,000 levels. The coin has been declining for the past few days, reached $58,593.05 levels on 16th Nov.
  • As expected, market to correct, the coin however, saw decline for the second consecutive day today and was at an intraday low of $58,379.55 levels today.

An extensive analysis of Bitcoin is discussed here. Bitcoin’s analysis has been done on a 5 day and daily chart.

Analysis

Here’s the market structure of the coin.

Bitcoin was trading at $66,339 levels, before it made a reversal and slid into a bearish rally. The coin has been rallying downwards since then and has traded below $60,000 levels. Bitcoin is currently trading at $59,635.24 levels, down by 0.79% and it’s the fourth consecutive day for which the coin ended the day in red. The fall in price comes with investor fear regarding US taxation and China swirls.

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Looking at the daily chart, the coin started off the day at $59,767.74 levels, the coin rose to an intraday high at $60,920.35 levels. The intraday low was seen at $58,402.23 levels. On the daily chart, Bitcoin saw bullish engulf at $58,912 levels. On a daily chart the strong sell region extends between $60,112.34 and $60,566.80 levels. Contrarily, the strong buy region was between $59,023.70 and $59,294.97 levels. On an hourly chart the coin is seen consolidating in a flag pattern at $59,753.41.

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Market Indicators:

Hourly RSI: The hourly RSI is moving currently down towards 55 levels, showing, mild price strength owing to pressure from seller side due to entry of buyers.

Fibonacci Retracement levels: 23.6%: $59,754.33, 38.2%: $60,562.96, 61.6%: $61,870.04

Major support level: $58,447.25

Major resistance level: $62,800.51

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Conclusion:

On the upside prices may move above $60,000 levels soon. The first major resistance sits at $60,599.65 levels. In event of an extended rally upwards, the second major resistance sits at $60,913.26 levels. Barring an extended crypto rally, the first major resistance is likely to cap the upside. On the downside a fall below $58,784.48 levels, will bring the first major support level $58,413.84 level in play.

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