Bitcoin Price Analysis Oct.11: Free fall following Nasdaq. Now what?

Freefall. In less than two hours Bitcoin fell almost $400. As mentioned yesterday: “next support lies at $6400 and $6250.”

On its way, Bitcoin broke all support levels, and as of writing this, stopped exactly at $6250.

Is it following the Nasdaq 4% fall from yesterday? Maybe. But looking at the Bitcoin chart, the decreasing volume, and the record-low of volatility – it seemed like a significant move is about to come. But, the direction could be either up or down.

Now what?

  • Crypto markets, along with global markets, turned to be bearish following this price action.
  • Next support level lies around $6100 and $6000. Afterward, the 2018 yearly low at $5700 – $5800.
  • BitFinex short positions could tell the whole story. We’ve pointed out yesterday that the shorts “had gained momentum and are now at their highest level since September 22.”, Whoever took those short positions might have known the coming up. Since yesterday this number had no significant change.
  • From the bull side, support-turned resistance at $6400 could be checked from below before continue going down. Above is the $6500 area where 200 days moving average line lies.
  • RSI levels are at still at their LOW levels; We could see a little correction upwards since the market is oversold.

BTC/USD BitFinex 4 Hours chart

BTC Oct11Cryptocurrency charts by TradingView. Technical analysis tools by Coinigy.

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