Bitcoin price has descended in free-fall fashion. Key levels have been identified for a possible bounce.
Bitcoin price falls sharply
Bitcoin price is currently down 7% since the start of October. The peer-to-peer digital currency is witnessing a steep penny-from-Eiffel-style decline as short-term bulls have completely abandoned ship near the mid $19,000 price level. If market conditions persist, a test of the summer lows at $17,800 will likely occur.
Bitcoin price currently auctions at $19,035. The bears are producing strong bearish engulfing candles and have pushed the Relative Strength Index into extremely over sold territories. The indicator suggests there will be pullbacks but they will probably be short lived. Bearish targets are at $18,088 and $16,766.
Investors should also keep in mind that the volume during the current decline still remains low. Thus a dollar cost average approach can still be implemented during these dreadful bearish days.
Invalidation of the bearish thesis remains above $20,500. If the bulls breach this level an additional rally towards $23,400 could occur resulting in a 23% increase from the current Bitcoin price.