Bitcoin lost 22 percent of its value over five days. On November 18, it looked good at $8,727 per coin. By November 23, it had fallen to $6,776. Investors wonder what else might happen. The first step in making a prediction is understanding what triggered the drop. A Plus Token scammer dumped 7,000 Bitcoin on Huobi. A few others wonder if China's recent promise to get rid of crypto exchanges had an impact. It is also possible someone sold their Bitcoin in order to buy something else.
People who have watched digital assets will get the point. China's FUD is a catalyst for negative price actions. From a technical perspective, Bitcoin met its historical activity. This is shown in charts of FUD aftermath. A Bollinger Bands indicator, which is a moving indicator, suggested the move.
The result can be interpreted two ways. The price broke the moving average, so the next move is the bottom of the band. This is about $2,547. On the other hand, Bitcoin is still between the moving average and resistance. The resistance is currently $11,450. Some suggest that another big jump toward the green could happen.
The moving average convergence divergence, or MACD, shows a lot of selling pressure. This is a bearish market, and suggests that more drops are in store for Bitcoin. This indicator has only been crossed four times in five years, and it's ready to happen again. This is true for weekly and monthly MACD.
In the upcoming week, investors should watch the Bollinger Bands. When a new candle forms, they should watch the low spot. The resistance is now at $9,600. If Bitcoin has a rally this week, it could be to get back at the level of $7,350, the current Bollinger Band support. It would have to stick there in order to attract bulls.
On the other hand, 2019 has been a great year for those who bought Bitcoin at $3,500. The pressure could be from those who decided to sell. If Bitcoin can manage the $7,350 resistance, then it might go up again to the $9,500 resistance level.