After yesterday reaching levels not seen since early 2018, Bitcoin took a breather over the past 24 hours, falling more than 3%, with 8 other top 10 cryptos also registering declines. However, the world’s largest cryptocurrency was still trading well above the $13,000 at the time of writing.
A closer look – Technical Analysis
We previously plotted key support levels in our previous article. Those levels represent strong areas to be considered for short term traders, or investors who just entered the market. The price of Bitcoin tested those areas multiple times only to bounce back.
In figure 1 above, the price of Bitcoin continued to test the USD 12,900 level and bounced back to USD 13,850 which is an all-time high level ever since 2018.
Coincidentally with Legacy markets, a strong adjustment in prices happened afterward which brought prices back to the blue line (fig.1)
A further potential price adjustment
Currently, the price of Bitcoin is trading around the psychological level of USD 13,000 and tested the blue and yellow lines in figure 1 several times. A fake-out even happened on the 26thof October 2020 and drove the price below USD 12,900 by USD 50, which might have triggered the stop loss levels for traders who use very tight SL levels. That’s why it is always advisable to higher the SL threshold.
Should the price of Bitcoin break through the blue and yellow support levels (USD 12,900 and USD 12,680 respectively), we might witness a short bear market, in tandem with legacy markets which is heavily affected currently with the USD presidential elections.
Top 10 cryptocurrencies registering heavy declines in prices
After the strong price adjustment which happened yesterday, the below top 10 cryptocurrencies registered heavy declines in the last 24 hours:
- Bitcoin: -2.76%
- Ether: -2.01%
- Tether: 0%
- Ripple: -3.29%
- Bitcoin Cash: -3.99%
- Chainlink: -2.58%
- Binance Coin: -4.12%
- Polkadot: -11.35%
- Litecoin: -6.72%
- Bitcoin SV: -4.41%
The above top 10 cryptocurrencies’ positions remain unchanged.
The year of Bitcoin
Bitcoin is still well above the yearly trend line. If prices were to adjust, it is always advisable to look out for the key support levels we provide in our analysis. The general consensus of the price of cryptocurrencies will heavily depend on fundamental news, be it technological applications to the blockchains or an increase in its commercial usage.
Stay ahead, stay updated
Rudy Fares
