Bitcoin Price Correction Halted – Bulls Take The Reins Again At $390

Bitcoin price correction started yesterday after we spotted a “Bearish engulfing” candlestick pattern on the 4 hour (BTC/USD) charts throughout yesterday’s analysis. Price correction pulled the price all the way down to $390, but thereafter we started spotting signs that signaled cessation of the downside price correction attempt.

Price Correction Slowing Down on 4 Hour Charts:

By analyzing the 4 hour (BTC/USD) charts from Bitstamp; executing Bollinger Bands and keeping the 38.2%, 50% and 61.8% Fibonacci retracement levels we plotted during our analysis on the 2nd of November, we can conclude the following:

  • Bitcoin price started dropping yesterday after it overshot above the 61.8% Fib retracement level ($478.64). The downside price correction wave started after a “bearish engulfing” candlestick pattern was evident on the charts (the grey ellipse on the lower chart).
  • Bitcoin price continued to drop until it dipped down below the 50% Fib retracement level at $416. Below $416, the trading pattern started forming candlesticks with long downswards shadows which reflect the strong support the price is getting below $416 at this point. A “doji” was formed before the arrangement of bearish candlesticks was halted by a greenish bullish candlestick.
  • Due to the strong support below $416, the price is expected to rise again to attempt piercing the $416 resistance level again.

bitcoin price, bitcoin analysis

bitcoin price, bitcoin analysis


Bullish Wave Slowing Down On 1 Day Charts:

By studying the 1 day (BTC/USD) charts from Bitstamp (take a look at the below chart); plotting the 20,50 and 100 EMAs and executing the Relative Strength Index (RSI), we can conclude the following:

  • A “pseudo” doji has been formed yesterday which reflects slowing down of the bullish wave that has been advancing at a high tempo.
  • Even though bitcoin price started dropping yesterday, it is still way above the 20, 50 and 100 EMAs.
  • The RSI value is averaging 80 (70), yet the curve started forming a downwards slope, so we can see it drop below 70 soon as the bulls take control again over the market.

bitcoin price, bitcoin analysis

bitcoin price, bitcoin analysis


Bitcoin Price correction attempt is slowing down after dropping to $390. Technical analysis of the charts signals continuation of the bullish wave within the next 24 hours or so.


Charts from Bitstamp; hosted on

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