Bitcoin Analysis for 2019-11-11 [Premium]

However, the rally stalled at $9,200 and the price has been decreasing since.  The outlook is still bullish in the medium and long-term. It is unlikely that BTC will decrease below $86,00. Rather, an upward bounce is expected soon.

Bitcoin Price Highlights

• Bitcoin has created two successive weekly bearish Dojis.
• The price has returned to validate the previous resistance line.
• There is a possible morning star pattern in development.
• Support can be found at $8,600-$8,800.
• There is a very short-term ascending support line in development.

Weekly Outlook

Looking at the weekly chart, we can see that last week BTC created another Doji, which had a smaller body than the one from the week prior. Both these Dojis were comfortably contained within the body of the bullish candle of October 21-28. Currently, the price is facing very close resistance from the 10-week moving average (MA), which had previously been acting as support. However, a slight upward move would take it above the MA, so the position of this particular MA can still be considered neutral.

Daily Outlook

Looking at the daily chart, the Bitcoin price has returned to validate the previous descending resistance line. This area also acts as minor support. The price reached its upper limits before initiating an upward movement. The outlined three-day pattern looks a lot like a morning star. However, the current daily bearish candlestick is in the process of invalidating the possibility. A close above $9200 would be required for the pattern to be validated.

Short-Term

In the short-term, the price is following an ascending support line inside the minor support area. Last night’s upward move ended once the price reached the previous support line. This is a bearish development since it is a validation of the previous support rather than a new upward move. The price could possibly make a double-bottom inside the support area before moving upward. The ascending support line seems like too much of a short-term development to hold much significance. This could easily play out as a breakdown wick followed by an upward move, or a complete invalidation of it. Good luck and happy trading! For yesterday’s analysis click here.

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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

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