Technical analysis on Bitcoin 13.11.2017

The price of bitcoin is in the middle of a much needed correction from its strongest rally since mid-September and the technical indicators show that uptrend could resume soon. In addition typical figure of technical analysis Double bottom, visible at 1 and 2 hour time frames indicates that the course is soon expected to grow to about 7150.

Basic information about bitcoin price
Bitcoin was in a strong sale with the moment of reaching the last maximum in 7370.
The increase in schedules to the long time interval shows that the bitcoin price is still in correction mode and is testing the first Fibonacci level.
This is due to the short-term area of support, but a deeper correction could find a way to the rising trend line on the daily chart.

**Technical indicators **
100 SMA is still above the long term 200 SMA on the daily time frame, so the path of least resistance is pointing up, and this means that the upward trend will resume in the near future.

In addition, the gap between the moving averages increases, which reflects the strengthening bullish momentum. 100 SMA coincides with a rising trend line connecting the minimum prices for bitcoin in mid-July, adding to its strength as a floor.

The price is also aligned with the Fibonacci retracement level 61.8 percent around the border of $ 5,000. On top of that, Bitcoin is near the previous resistance level, which now can be regarded as support, so it is expected many of the purchase orders in this area.

Stochastic is pointing down, but plunges into oversold territory, which indicates exhaustion among sellers. RSI has more features for the fall, however, the bearish pressure may remain in play as long as the oscillator reaches oversold levels and will not return back.

If buying pressure returns to any of the Fibonacci levels, the price of bitcoin could resume its ascent to its previous high and above. On the other hand, a price move below the trend line and 61.8% of Fibonacci may mean the beginning of a long term reversal.

Market factors

The price of bitcoin rose on the news that the hard fork the 2 this month are suspended, but this scenario sooner or later will appear again, and this means that the uncertainty is delayed, but not eliminated.

Meanwhile, the dollar is also under pressure associated with a large number of issues within tax reform, which in turn also has a positive effect on Bitcoin price.

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