Daily Bitcoin Update
If the last 24 hours tell us anything, it is this: the bears may have further to run yet! The price today finally broke through the strong 365-370 support level – a level it has been testing all week - and quickly moved south amid strong selling pressure to hit an intraday low of 352.
The last few hours of market activity paint a picture of players becoming bored with the persistent sideways pattern and deciding to spice things up by introducing some serious volatility into the market. The green technical indicators morphed into red as the sellers hit and hit hard, quickly putting the “bitcoin in a long bull run” theory to the sword. All of this suggests that the bitcoin market is still run by sentimental traders rather than by long term bitcoin believers, perhaps to the chagrin of many who (like us) love the underlying bitcoin technology.
Despite all of this, we still saw some small rallies over the day as the price desperately tried and failed to break through the 350-support level. The real question is how far can these rallies drag the price back up before it starts heading south once again? More on that later.
November 20th Bitcoin Trading Session
The BTC/USD opened at 379 on the 1-H Bitfinex chart and continued to trend sideways in the absence of any serious trading volume. The trend quickly transformed into a bearish one around 7:00 AM UTC when some heavy selling threatened to smash the market. This caused the price to (finally) break below the strong support level of 365 and move into a bearish channel, with the RSI below 30. The BTC/USD eventually received some unexpected support around 355 and the price rallied back a little before trending sideways between the 358 and 360 price levels.
What to Expect Today?
From what we see at the moment, the most likely scenario for the next few hours is the price moving sideways. The RSI is currently sitting at 34.5, indicating slight bullish momentum and suggesting the possibility of a shift to a near-term bullish trend, although this is not our base case.
The key psychological support level of 350 looms large, however, acting as the proverbial wall between a bullish move up and a long-term bearish bias. In the event that the price breaks below this level in the next 24 hours, the price will enter the October bearish channel where the double bottom of 320 will be firmly in sight. If we bounce back from 350, we can expect the price to move up towards 400, though likely for a short period.
Conclusion
Current Mood: Strongly Bearish on Daily Charts
Moving Averages: Strong Sell (0 Buy, 12 Sell)
Technical Indicators: Sell (1 Buy, 5 Sell)
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