Bitcoin Technical Analysis November 12th

Bitcoin (BTC) holds above a horizontal and diagonal support area, a break below that could trigger a very sharp decline.

Day outlook

Bitcoin has been falling since November 10th when it hit a new all-time high of $ 69,000. So far it has hit a local low of $ 62,822.

Before the decline, the technical indicators showed significant weakness in the form of declining divergences in both the RSI and the MACD (blue line). This means that the rise in prices is not accompanied by an increase in dynamics. Which usually precedes a trend reversal.

If BTC continues to decline, the next minor support is at $ 57,750. This is the short term fib retracement support at 0.382 (white).

The next major support zone is between $ 53,700 and $ 54,350. This target range is the short term fib retracement support of 0.382 and the long term fib retracement support of 0.5 (black).

BTC / USDT daily chart | Source: TradingView

Short term support

The six-hour chart shows BTC breaking above a symmetrical triangle before reaching the all-time high mentioned above. Shortly afterwards, however, a bearish engulfing candle was also created. This is a bearish candle where the previous profit is completely covered by a larger decline. It also supports the possibility that BTC will continue to fall.

Currently, BTC is trading just above the horizontal support area of ​​$ 63,500, where it has rallied from November 10th (green symbol). This area also coincides with the support line of the triangle and is a very strong support area.

A break below that could trigger a sharp decline. The wavenumber also supports the possibility that BTC will continue to decline.

BTC / USDT 6-hour chart | Source: TradingView

In the short term, BTC was rejected by the 0.382 fib retracement resistance ($ 65,240). If the short-term upward move continues, a rally to the stiff resistance at $ 66,680 is possible.

However, given that ATH’s decline is so severe, it looks unlikely that BTC will exceed this level.

BTC / USDT 2-hour chart | Source: TradingView

You can see the BTC price Here.

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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.

SN_Nour

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