According to the October 8 Bitcoin analysis; Although Bitcoin corrected to the downside from the $55,700 region yesterday, the bulls managed to push the price back above the $54,000 level. According to technical analysis by NewsBTC’s Aayush Jindal, Bitcoin may correct but declines are likely to be limited to $53,000 and $53,200:
- Bitcoin started a downside correction well above the $55,500 level.
- The price is now trading above $53,000 and the 100 hourly simple moving average.
- There was a break below a key bullish trend line with support near $53,100 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair may correct for a correction but the bulls are likely to remain active near $53,000.
Bitcoin Experiencing Correction
Although Bitcoin faced a correction wave yesterday, it continued to hold its gains. Bitcoin price remained in a positive zone above the $52,000 resistance. BTC even broke the $55,000 resistance level and climbed above the 100 hourly simple moving average. However, the price failed to continue higher above the $55,700 zone. A high was formed near $55,770 before a downside correction was made. The price corrected lower below the $55,200 support level. The price even traded below the 23.6% Fib retracement level of the upward wave from the $50,365 low to $55,777 high. There was a break below a key bullish trend line with support near $53,100 on the hourly chart of the BTC/USD pair. Immediate support on the downside is near the $53,500 level.
According to Jindal, an initial resistance on the downside is near the $54,500 level. The first major resistance is near the $55,000 level, where the price could move higher. The next major resistance is near the $55,500 level. Any further gains could set the pace for a move towards the $58,000 level.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to break through the $55,000 resistance zone, it may continue to move lower. Immediate support on the downside is near the $53,500 level. The first major support is now formed near the $53,100 level. The next major support is near the $53,000 level. It is close to the 50% Fib retracement level of the bullish wave from the $50,365 high to $55,777 high. Any more losses could open the doors for a move towards the $52,500 level. The next key support is near the $52,000 level.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now moving in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
- Major Support Levels – 53,500 then $53,000
- Major Resistance Levels – $54,500, $55,000, and $55,500
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