On November 14th, after bulls attempted and failed to breach higher, bitcoin (BTC) prices dropped to $16,500. As the BTC price movement consolidates around this region, former U.S. intelligence contractor Edward Snowden offers a perspective on the present market situation, suggesting that people invest in Bitcoin.
Mixed sentiments afloat
The tweet came as a call back to a tweet he posted after the March 2020 COVID-19 cross-market crash, stating that he felt like “buying bitcoin”.
“There’s still a lot of trouble ahead, but for the first time in a while, I’m starting to feel the itch to scale back in,” he said in his recent tweet.
While Snowden’s comments seem on the positive side, technicals say otherwise. With no apparent relief in sight, it was no surprise that Bitcoin’s price stayed flat. Michal van de Poppe, CEO of trading platform Eight, commented on the situation, stating:
“Markets consolidating. Would assume we’d be at $10K actually, after the terrible news we’ve received past weeks.”
The Bitcoin price tried to make a comeback over the $17,500 resistance level. However, it continued to trade below the 100 hourly simple moving average and struggled to break over the $18,000 resistance level.
Bitcoin formed a high near $18,155, followed by a second drop. Both the $17,500 and $17,200 support levels were broken, sending the price down. The bears managed to break the price below the 50% Fib retracement line of the upward trend.
Meanwhile, trader and analyst Rekt Capital has warned of impending support-resistance flips looking at Bitcoin’s lowest weekly closing in two years. The analyst posted an image of the Monthly BTC levels shown on the Weekly timeframe, adding that Bitcoin “has performed a new Weekly Close below the Monthly level of ~$17300.
“Initial signs of this level flipping into new resistance this week,” he added.
Analysts believe the $15.550 region is the next critical support level. If bitcoin’s price drops below the $15,550 support level, it might fall much further. In such an event, it is possible that prices may drop to test the $15k support range.
