Bitcoin (BTC) Technical Analysis – October 11, 2019

Bitcoin (BTC) Technical Analysis – October 11, 2019

The Bitcoin (BTC) slid down on Friday, decreasing the price to less than 8600. The price decrease followed a major economic release concerning the consumer price index. The technical bias might remain bearish because the Bitcoin (BTC) price printed a lower low in the recent downside move.

Bitcoin (BTC) Technical Analysis

As of this writing, the Bitcoin (BTC) is being traded around 8572.1, the price is likely to hit a support level at 7790.4, the trend line support ahead of 7200.0, the psychological number and then come 6465.1, the major horizontal support which might support the price preventing it from falling below this level as shown in the graph below.

Bitcoin

Coming towards the upside, the price may come across a resistance around 9306.6, the key horizontal resistance level. Another resistance level is anticipated to hit the price around 9792.3, the trend line resistance and then 11043.5 is the next resistance which is also known as the 38.2% Fib level might keep the price to stay below the said level as shown in the graph above.

US Consumer Price Index Ex Food & Energy Release

The department of labor statistics, United States has recently released stats concerning the CPI index. According to the figures, a slight decrease is observed and the figure remained 0.1% this month, as compared to 0.3% the month before, down beating the economist’s expectation which was 0.2%.

It is worth noting that the figure represent an estimated price variation after comparing prices of different products in the retail sector on sampling basis. However, it doesn’t include volatile items or products such as food, and energy to arrive on unbiased exact figures. Generally speaking, a high reading is considered as a bullish market for the digital currency whereas a low reading suggests the bearish market ahead.

Trade Idea

Considering the price behavior of the digital currency over the last couple of days, buying the Bitcoin (BTC) around current levels may prove to be a good decision in short to medium term. 

 

By Desislava Yunakova
Desi was one of our financial journalist trainee, someone who's now moved on to be a Strategic Analyst at Whirlpool.
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