Bitcoin Technical Analysis November 3rd
Bitcoin (BTC) attempted to break above the resistance area of $ 63,530 on November 2nd without success. It is currently in the process of finding support before possibly another breakout attempt is made.
BTC has been on the rise since October 28 when it bounced off the 0.382 Fibonacci retracement support at $ 56,550 (green symbol). So far it has hit a high of $ 64,270 on November 2nd.
The November 2nd rally is especially important as BTC created a bullish candle with its highest closing price since the October 20th decline.
However, despite the surge in price action, the technical indicators have yet to turn bullish.
The MACD, made up of the short and long-term moving averages (MAs), is still falling. In addition, his histogram produced 13 consecutive bars of lower momentum. This means that the short-term upward trend is slowing down further. However, it is still in positive territory, which indicates an upward trend.
Similarly, the RSI is falling but still above 50. The RSI is a momentum indicator and this result shows that although strength is being lost, momentum is still increasing.
BTC / USDT daily chart | Source: TradingView
The six-hour chart shows how BTC breaks over a descending parallel channel and then confirms it as support (green symbol). This is a very bullish sign as it suggests that the correction from the all-time high may be over.
On November 2nd, BTC attempted to break above the 0.618 fib retracement resistance at $ 63,530 but failed. With the Fib level at 0.618 usually acting as resistance after the price rebounds, a breakout would confirm the correction is over. The wavenumber also supports the breakout potential of BTC.
BTC / USDT 6-hour chart | Source: TradingView
The two-hour chart offers three key areas of support for BTC to rally before attempting another move higher.
These supports are found at $ 62,400, $ 61.830 and $ 61,250 – the 0.382, 0.5 and 0.618 fib retracement support levels, respectively. The latter also coincides with a rising support line from the October 28 low and therefore has the potential to provide strong support should BTC fall back due to the consolidation of support levels.
BTC / USDT 2-hour chart | Source: TradingView
You can see the Bitcoin price here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto