Despite the downturn – 3 reasons for Bitcoin’s uptrend to continue
Although Bitcoin has temporarily lost over the weekend, the signs are still positive.
Bitcoin ( BTC ) fell back to an interim low of $ 15,670 on November 15. The downturn came a few hours after BTC climbed to $ 16,355, the latter suggesting that the uptrend may continue.
Accordingly, the downturn can be attributed to three main factors, all of which confirm the thesis that things will continue to rise. These are a weekend „cleaning process“, a retest of the moving average (MA) and a retest of parabolic course development.
As Cointelegraph reported , algorithmic traders assumed there would be a downturn in the Bitcoin market by the weekend.
They justified this with the fact that there were a large number of sales orders above the 16,500 US dollar mark, which, however, were not triggered after Bitcoin had already risen to at least 16,400 US dollars. From this, the traders in turn concluded that the sell orders are real, which sooner or later will put pressure to sell.
So although the market structure may have caused some traders and trading bots to sell, the crypto analyst sees the return as positive.
He thinks that this is a cleansing of „negative technical price mechanisms“ and that downturns should rather be perceived as a buying opportunity. Accordingly , he writes :
“Conclusion for the weekend: We are rid of a few negative technical course mechanisms (4 hours RSI Div., 8 hours TD9). In the short and medium term, the fundamentals are still positive, more and more crypto assets are being withdrawn from crypto exchanges, and more and more investors are joining. So downturns are still a buying opportunity. “
The downturn is a positive test
In the daily chart, the downturn to $ 15,600 represents a retest of the 10-day moving average (MA), i.e. the moving average of the last 10 days. The retest is important because Bitcoin also had a strong last week Climbing did this test before it went further up.
However, should the price slide below the 10-day MA, then the downturn would likely solidify. However, the fact that Bitcoin last caught itself here, as was the case on November 7th, is a good sign in the short term.
On November 7, Bitcoin had slipped similarly, although the price was still in a different price range. It fell from $ 15,753 to $ 14,344 a little over a week ago, down 5%. However, the market-leading cryptocurrency was able to find a stop on the 10-day MA.
In the days that followed, BTC hit a two-year high of $ 16,480, which shows how strong the subsequent recovery was.
Parabolic uptrend remains intact
The crypto analyst Josh Olszewicz shows on a price chart that Bitcoin is in a parabolic upward trend.
In such an upward trend, the lift continues to increase as the price rises. However, if this price formation is broken down, there is a risk of a sharp downturn.
For now, the parabolic price formation will remain intact as long as BTC can hold above the $ 15,300-15,500 price range.
The rest of the crypto traders and analysts see it similarly. Cointelegraph expert Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, also sees the support at 15,500 US dollars as an important reference point.
Bitcoin must initially stay above $ 15,500 and ideally continue to defend the $ 15,700 mark, as it has already done in the past 24 hours, in order to maintain the upward trend.