Bitcoin (BTC) Price Forecast, Analysis and Chart:
- Bitcoin’s technical continues to show a negative bias.
- October low remains in sight.
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Bitcoin (BTC) Price Steadily Drifting Lower
Bitcoin continues its grind lower and has lost 15% in value over the last two weeks as sellers remain in control of price action. We noted the recent death cross formation in late-October – 50-dma trading down through the 200-dma – and little has changed to bolster the largest cryptocurrency.
BTC has also fallen below all three moving averages, a negative chart signal, and there is little in the way of support until the October 23 low at $7,300. The downtrend off the June 22 high may offer short-term support, currently situated at $7,880, but a confirmed close below this line should see the price fall back to the recent low print. The CCI indicator shows Bitcoin in oversold territory, while IG Client Sentiment shows that retail traders are 84% net-long Bitcoin, a bearish contrarian bias.
Bitcoin’s Average True Range – a volatility measure of buying and selling pressure – is close to a multi-month low, highlighting the lack of trading activity in the market. It should be noted that cryptocurrencies have a habit of breaking quiet market conditions with a sharp move either way, and traders should be aware of any potential breakouts.