Bitcoin Altcoins

The Bitcoin price has initiated a downward move, which has put into play a bearish medium-term scenario in which the price could drop to $7000.

Cryptocurrency analyst and trader @murocrypto stated that the Bitcoin price structure suggests that we are in a bearish market. He outlined the closest support area at $7000.

Let’s take a closer look at the Bitcoin price movement — along with technical indicators — and decide where the price will go to next.

Previous Movement

Since June 26, the Bitcoin price had been trading inside a symmetrical triangle. The price broke down from this pattern on September 24.

Afterward, the Bitcoin price initiated a rapid upward move on October 25. While this was initially seen as the beginning of a new uptrend, signaling that the bottom is in, the subsequent price movement makes us believe that it was a validation of the previous support line as resistance.

There are two support areas, one minor at $8000 and the other near $7000. A breakdown below the latter would likely cause the price to fall towards $5000.

Bitcoin Previous Movement

The entire upward move throughout May/June/July was preceded by a bullish cross between the 100- and 200-day moving averages (MA).

Now, the opposite has occurred — since we have a bearish cross between the aforementioned MAs. This is another bearish sign.

Bitcoin Moving Averages

Current Bitcoin Breakdown

In the short-term, the Bitcoin price broke down from a descending wedge. It is not currently following any clear trading patterns.

The volume on the breakdown was weak. This increases the chances that we will see a bounce at $8000. However, due to the bearish long-term market structure, we do not think the small levels of volume make it sufficient for this to be considered a fake breakdown.

Bitcoin Wedge

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.

Images courtesy of Twitter, TradingView.

Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!

The post Bitcoin Outlook Has Changed to Bearish, According to Analyst appeared first on BeInCrypto.

Source: Be In Crypto