This weekend has been nothing but boring in terms of market activity. Last week was one of the most exiting weeks in the last few months, and now the sea is calm again. Is there a volcano brewing underneath ready to set the bitcoin ship to the moon or is there a tornado coming that will wreck the ship into a million pieces. In our previous bitcoin technical analysis on 11/7 we mentioned that if the price isn’t going to make any major swings in the coming days, then the market will look to settle and stabilize.
In the past 24 hours Bitcoin hit a low of $370 and a high of $390. The market has neither tested the $350-$360 support zone, nor the $400 resistance zone; our conclusion is that traders are waiting on the sidelines for any major activity. Data such as the decrease in volume and RSI along with a decrease of margin plays on bitfinex reinforces our speculation.
Edited chart taken from bitcoincharts.com, is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
One observation originally mentioned by nagatora to notice is if we plot a fibonacci retracement using the $198 low on September 24th, and the recent $502 high we see that $385 is an important pivot point. If the market breaks through $385 then our next stop is $430, otherwise get ready to test support at $350.
Chart taken from tradingview
These next few days are important in terms of setting the current trend. Support at $350 is too strong to fall under and if we can break through the $400 psychological barrier bitcoin can see further movement to the top.
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Disclaimer: This is not trading advice