Bitcoin Breaks the Previous Low in October. Eyes the Support at $5,500

Bitcoin is falling and may reach the lows of either $5,000 or $5500. The pair will pause at $6,500 but will continue its downward move.

Bitcoin has continued to fall unabated after the bulls moved up and retested the $9,200 price level. The market dropped to a low at $6,750 but broke the previous low at $7,500. Bitcoin falls below the previous low; it means that the sellers are in control. If the market continues its fall, the coin will reach a low of $5,000 or $5,500. However, if the price falls and holds at $6,400, it may move up and continue its lower lows and the lower highs pattern.

Bitcoin Indicator Reading 

Since November 8, Bitcoin has had a bearish crossover that signals a downtrend move. The price is falling and approaching the low of $6,800. A break below the channel is an indication that the market will fall. Bitcoin is trading below 20% of the daily stochastic meaning that the coin will face strong selling in that region.

Key Supply Zones: $10,000, $11,000, $12,000

Key Demand zones: $7, 000, $6, 000, $5,000

What Is the Next Direction for BTC/USD?

The overall trend of the pair is a downward move. All the indicators are pointing southward meaning that the sellers are in control. From the daily chart, the bears broke the previous low in October signaling depreciation for the coin. The market will reach a low of $5,000 or $5,500 before Bitcoin will have some respite.

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.