Bitcoin Technical Analysis for 11/7/2015 The calm before the storm

In our previous technical analysis for 11/6 we speculated that if prices hold steady for the next day there may be a sign that stability is here. The recent bull run signaled the completion of the 1 year long bearish market. Because of the sudden decrease in trading volume post the bull run, we speculate that the market will try to stabilize between strong support and resistance orders.

pantheo from tradingview suggests that the demand and support zones are ~$250 and ~$400. There simply isn’t enough momentum to continue crazy price movements, this chart shows the demand and supply areas as pointed out by pantheo:

Edited chart taken from bitcoincharts.com, is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.

The active zone is an area between strong support and resist regions, currently ~$250 and ~$400. If we break the $400 psychologiacal barrier once more, then the active zone would increase to include the $400- $500 area. Because of the loss of momentum from the bull run, support is at $350 and we face major resistance at $400.

Another important data to take not off is the fact that the Bitfinex margin funding amount has decreased by 25% from a high of $30m to the current low of ~$23m.

Chart provided by btxdata

The decrease in active swaps does not mean that traders have got disinterested. As suggested by _ich_ on r/BitcoinMarkets, because the price has stabilized at the high $300s with such low amount in longs, “Looks like everyone are waiting on the sideline to see what happens”.

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Disclaimer: This is not trading advice