Just as the technical situation was improving and buyers were finally regaining confidence yesterday, Tuesday 8 November, the general mood turned upside down. This is due to the Twitter affair between the founders of the FTX platform and its competitor Binance. The result was a real blow to the cryptocurrency market. Analyses…
Bitcoin - Weekly chart: everything is back on track ...
As explained in the introduction, from a medium-term perspective, prices were giving encouraging signals. The escape from the Tenkan weekly, progress towards the $ 25.000 resistanceIn short, the buyers were taking over. But the day of Tuesday 8 November was upset by a fundamental news that literally annihilated the rebound started. And this in a few hours.
Today the technical situation is very different. The support that saved the price from a return to $ 15.000 is currently being disrupted by prices. This means that the weekly close will be crucial: if it is below 18 900 $, the likelihood of a resumption of decline will be high.
To invalidate this more than pessimistic scenario: a closure above the aforementioned support is essential.
Bitcoin - Daily chart: stopped by a wall
During this event Tuesday November 8Prices have undergone a sharp downward correction and the volatility was extreme. The announcements fueled the fire and eventually sellers took over, sending prices lower.
Currently, from a daily perspective the support of $ 18.900 is broken. This break is made with more than important volumes. This confirms the sell signal sent by the market. Furthermore, the MACD indicator sends a negative signal with a bearish crossing of the two moving averages.
No return above this key level, a return to $ 16.700 should be considered the prime target. Objective achieved with a Fibonacci extension. But it remains clear that a technical rebound will only be possible with a clear and concise announcement of a solution for FTX. Without this news, investors will steer clear of this volatile market. This opens the way for prices to return to much lower levels.
