Warning: Bitcoin Testing Critical Support. Should You Be Worried?

November 3, 2020

Current Bitcoin Data

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Bitcoin has remained very bullish these past few weeks. However, the cryptocurrency is still struggling to break through the $13,877 resistance region.

This lack of definite momentum has led to the Bitcoin price trading sideways and forming a rising wedge pattern. This is a very bearish pattern clearly indicating that there is a very high probability we might see a Bitcoin dump in the coming days.

Warning: Bitcoin Testing Critical Support. Should You Be Worried?

In this Bitcoin analysis, we will be pointing out key levels to watch out for in the coming days as well as the likely targets to aim for once price breaks through this supports.

Important Levels To Watch

Important Levels To Watch

The first two levels to keep an eye on are the base channel of the rising wedge pattern and the $13,075 horizontal support region. A break of these supports is a strong indicator that we might likely see a Bitcoin sell-off in the coming days.

This sell-off might coincide with the volatility we expect to see come into the Bitcoin market during the U.S presidential elections.

Price Targets

However, if a Bitcoin sell-off does occur in the coming days, this is not a call for alarm as the Bitcoin market is still very bullish long term and the sell-off can be termed a slight retracement in price.

Warning: Bitcoin Testing Critical Support. Should You Be Worried?

The likely price target for this sell-off is the base of the larger sending channel Bitcoin is currently trading in. A price sell of to these regions would be a 26% dump, this can be considered a healthy retracement for the bull run we are currently experiencing in the Bitcoin price.

Important Levels To Watch

This sell-off would push the Bitcoin price back down to the $12,000 region before finding support and bouncing back up.

However, if the sell-off doesn’t occur and Bitcoin continues to remain bullish in the coming days, we will need to see the price break through the $13,877 resistance region and the top channel of the ascending channel before looking for buy entries. That will help us confirm the full resumption of the bullish trend.

Important Levels To Watch

We also created a video below where we talked more in-depth about the current patterns forming in the Bitcoin market, key fundamentals as well as the Stock to Flow chart, and what it means for Bitcoin in the coming weeks.

To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With

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