![Bitcoin Analysis for 2019-11-12 [Premium]](/_mfes/post/_next/image/?url=https%3A%2F%2Fbeincrypto.com%2Fwp-content%2Fuploads%2F2019%2F06%2Fbitcoin-profit.jpg&w=1920&q=75)
The Bitcoin price has created a daily bearish engulfing candlestick. However, it is still holding on to support offered by the previous descending resistance line. It is trading in a range between $8600 and $9150. We believe it is likely to move towards the resistance area. Meanwhile, the Monero price has broken out from a descending wedge.
Bitcoin Price Highlights
- The Bitcoin price has returned to validate the descending resistance line.
- It has created a daily bearish engulfing candlestick.
- There is support at $8600.
- There is resistance at $9150.
- A short-term bullish divergence has developed in the RSI & MACD.
Monero Price Highlights
- The XMR price has broken out from a descending wedge.
- There is resistance at ₿0.0072 and ₿0.008.
Morning Star Invalidation
Looking at the daily chart, Bitcoin has returned to validate the previous descending resistance line.
Yesterday, it created a bearish engulfing candlestick. This invalidates the possibility of the morning star pattern we discussed yesterday. However, the presence of lower wicks solidifies the support area near $8600.
SponsoredAgain, if the Bitcoin price reaches a close below the descending resistance line instead of using it as support, this will have major bearish implications.
Trading Range
Looking at the short-term, we can see support and resistance areas at $8700 and $9150, respectively. We think the Bitcoin price is likely to create a trading range between these two levels.
SponsoredAlso, there is a very strong bullish divergence in development in both the RSI & MACD — making it likely that the Bitcoin price will move towards the resistance area.
Monero
We discussed the XMR movement on October 25, when it was trading in the middle of the wedge. Since then, it has broken out slightly and has reached the resistance area at ₿0.0072. If it moves above it — which we believe is likely — it will reach the next resistance area at ₿0.008.
SponsoredThe presence of several upper wicks solidifies the resistance area at ₿0.0072.
For our previous analysis, click here.
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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