Bitcoin price analysis 8 Nov: A new uptrend or a bull trap?
Bitcoin could pick up momentum above $67,020
Bitcoin (BTC) has been trading above the $60,000 level for the past few days indicating strength. The bulls will now attempt to push the price above the all-time high.
Christopher Wood, Jefferies Global Head of Equity Strategy, doubled down on his bullish bitcoin view. Wood said in a recent note that for his long-only asset allocation portfolio recommendation for the US-dollar-based pension funds, he recommends increasing bitcoin exposure from 5% to 10% while decreasing gold’s exposure by 5%.
Quantitative analyst PlanB said in an interview with Anthony Pompliano that bitcoin could surge anywhere between $300,000 to $500,000 early next year before crashing again to about $100,000 and then stay in a bear market until the start of the next bull cycle.
Ki Young Ju, CEO of on-chain monitoring source CryptoQuant said on 5 November that bitcoin whales have been dumping their bitcoin on the exchanges. However, a positive sign is that selling by the large-volume holders has been quickly lapped up by the bulls and the bitcoin balances have continued to decrease across most crypto exchanges.
Will bitcoin go up and start its journey toward the $100,000 mark or will the analysts be proven wrong this time? Let’s see what charts project. Read our BTC price analysis to find out.
Bitcoin price technical analysis: weekly chart
The uncertainty of the Doji candlestick pattern resolved to the upside last week as BTC’s price rose 3.20% to finish the week at $63,309.20. The bulls are attempting to build up on this advantage and thrust the BTC/USD pair above the overhead resistance zone of $64,919.10 to $67,020.
If they succeed, the pair could start its northward march to $75,000 where the bears may mount a stiff resistance. A break and close above this level could clear the path for a possible rally to $95,237 and later to the psychological level of $100,000.
Both moving averages are sloping up and the relative strength index (RSI) is close to the overbought zone, indicating the path of least resistance is to the upside.
Contrary to this assumption, if the price turns down from the current level, the pair could drop to $57,500. This is an important level for the bulls to defend because a break below it could sink the pair to the 20-week exponential moving average (EMA).
What is your sentiment on BTC/USD?
The bitcoin price analysis shows that bulls are in control and the indicators point to the possibility of a breakout to a new all-time high.
Bitcoin price technical analysis: daily chart
BTC’s price has formed a cup and handle pattern which will complete on a breakout and close above the overhead resistance at $67,020. The rising moving averages and the RSI in the positive territory indicate advantage to buyers. This bullish setup has a target objective of $101,198.50.
Conversely, if the price turns down from the overhead resistance or if bulls fail to sustain the pair above $67,020, it will suggest that demand dries up at higher levels. The pair could then drop to the 20-day EMA.
If the price rebounds off this support, it will indicate that the sentiment remains bullish and traders are buying on dips. The bulls will then make one more attempt to resume the uptrend.
The bears will have to pull and sustain the price below the 50-day simple moving average (SMA) to gain the upper hand.
Bitcoin buy or sell at current levels
Bitcoin price analysis shows that the pair has rebounded off the 20-day EMA and the bulls will now attempt to clear the overhead hurdle and resume the uptrend. If they succeed, the pair could rally to $75,000 where the bears may pose a stiff challenge. This bullish view will invalidate if the price turns down from the current level and breaks below the 20-day EMA and the horizontal support at $57,500.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial advisor before arriving at a decision.