Two weeks ago the rate rocketed! And after a long time of sideways movement, we go down slightly again. But is that bad? That is not necessary, it can still go the other way.
Price drops due to support
In the past two weeks, the bitcoin rate found strong support at 8,100 euros. It seemed as if the rate could not fall below. But that happened at a quarter past two this afternoon. The price of bitcoin fell by three percent in less than half an hour. Bitcoin is now worth less than 8,000 euros. And for the Americans among us: the rate is now also below the psychological limit of 9,000 dollars.
What does this mean in the longer term?
We zoom out a bit on the graph to get a better picture. And then it doesn’t look that bad at all.
In recent months, bitcoin has failed to break out of a falling trend line. Until the evening of 25 to 26 October. Then the course shot through the blue trend line with a lot of violence. And that outbreak is important, it can signal the start of a new rising trend.
The course no longer finds support on the green zone. But nothing needs to be wrong if the price can test the trend line:
The rate of the second half of 2019 also looks suspiciously similar to the rate at the end of 2017 until the outbreak in April this year. You can see this rate on the graph below. Even then, bitcoin broke from a falling trend line and found the price support at an important point. Will history repeat itself?
The even bigger picture, bitcoin, has broken out more often
When in doubt, zoom out! They say that sometimes. So that’s why we zoom out even further on the graph. You now look at the total history of the bitcoin course. The graph shows the most important moments when the course has broken out:
These are the two most recent outbreaks. You see that the bitcoin course first moves sideways for a while after an outbreak. But after that it goes fast. The price rises structurally, until the price reaches a new top. And there the cycle starts again:
Our two scenarios
Can we expect some more action from the bitcoin course? We are the objective bitcoin brothers, so you can of course expect two more scenarios from us!
Bullish
In the event that the rate rises, the bitcoin can look up the old summit at around 9,500 euros. There is an important resistance zone there.
Bearish
But if the rate falls, then we can expect a decrease towards 7,200 euros. Before that time, the price can find support on the trend line. If the rate falls quickly then this support is at 7,800 euros.
Who will win the Ledger?
Also this week we asked you to predict the rate of bitcoin. And that is not easy, the price of bitcoin is moving up and down considerably! The winner can be found in the comments on our news site. Congratulations Marijke! Your Ledger Nano S is coming your way as quickly as possible ?
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