Bitcoin prices consolidated during this past weekend and confirmed a previous level of support of USD 12,680 discussed in our previous Bitcoin Price Analysis.
New Support level tested during the weekend
Very low volatility was recorded for Bitcoin during the weekend. On Friday, the price of Bitcoin almost tested the USD 12,680 level, reaching a low of USD 12,730 on Friday the 23rd of October 2020 (fig.1)
A sudden price drop on Sunday
Traders were met with unexpected volatility on Sunday the 25th of October 2020, around 7 am UTC+2, where the price of Bitcoin dropped from a high of USD 13,360 to around USD 12,906 within 1 one hour. Traders who placed their stop losses at USD 13,000 were closed out. (fig.1 red circle)
It is always advisable to always place stop losses below psychological levels, depending on a trader’s risk appetite. Our previously stated support levels are still valid for this coming week.
Bitcoin Price Analysis – A new Support level for Day traders?
When the price suddenly dropped on Sunday, it resisted a price level of USD 12,900. This level is a strong support area for Day traders, as it was tested 4 times already. (fig.3)
Should this support level fail to hold the price above USD 12,900 we can expect a potential short-term price adjustment to the S1 price of USD 12,680.
Top 10 Coins by Market Cap to date
Today’s top 5 cryptocurrencies by market capitalization remain unchanged:
- Bitcoin: USD 244.4 Billion
- Ether: USD 45.8 Billion
- Tether: USD 16.3 Billion
- Ripple: USD 11.4 Billion
- Bitcoin Cash: USD 4.9 Billion
With the following Altcoins to follow:
- Chainlink: USD 4.6 Billion
- Binance Coin: USD 4.4 Billion
- Polkadot: USD 3.9 Billion
- Litecoin: USD 3.7 Billion
- Bitcoin SV: USD 3.3 Billion
Bitcoin Price Analysis – What to expect for the Week Ahead
If low volatility continues, the price of BTC is expected to adjust back to its previous week’s price level of USD 13,360. Bitcoin is currently on an uptrend correction. The Fibonacci retracement shows a big possibility that the price reaches the USD 13,538 as a short term price target. (Fig.4)
Traders should be on the lookout for potential price drops below the key support levels, especially the levels of the blue and yellow lines. (Fig.4)
Stay ahead, stay updated
Rudy Fares
