Bitcoin Price Analysis: Bitcoin price fell after bulls fail to hold the $8,000 support level. The BTC/USD pair is likely to experience more selling pressure because of the bearish setup.
On October 23, Bitcoin has surprisingly attracted more sellers upon the breakout of the bearish setup. This signals the fulfillment of the price bearish pattern. Although the price has fallen to a low above $7,400, there is a likelihood of further depreciation.
The market is making a brief consolidation after the downward move. Bitcoin is expected to fall to a minimum distance of a bearish Flag pole. Nevertheless, if the selling pressure continued, the bears may break the $7,000 support level and reach a low of $5,400.
The bearish flag is a continuation pattern that breaks out in the direction of the prevailing trend. The break out from the bearish flag has reached the low above $7,400. In a normal setup, the price fall should be a minimum distance of the bearish flag pole. From the measurement of the bearish flag pole, Bitcoin is likely to depreciate to a low of $5,400; except the price action states otherwise.
From the Fibonacci tool, the lower swing is taken from August 29, while the upper swing is from August 5. During a price action, a bullish candlestick tested the 0.618 retracement level. The 0.618 retracement level indicates that the market will reach a low of 1.618 extension level or the $7,472 price level. However, at this level, the depreciation may continue. Meanwhile, Bitcoin is below the 20% range of the stochastic indicator. This suggests that the price is in a strong bearish momentum.
The BTC/USD pair is likely to fall following the bearish pattern formation. All the price indicators are in favor of further depreciation. The BTC price is below the EMAs which indicates a further downward move. On the downside, if the bears break the $7,400 and $7,000 support level, the market will reach the estimated low of $5,400.
Key Supply Zones: $10,000, $11,000, $12,000
Key Demand zones: $7, 000, $6, 000, $5,000
Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.