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By: Stuart Cowell
Bitcoin, which closed its fifth consecutive day lower yesterday (November 11), has been trading under $9,000 for three days and tested the key 20-day moving average for the first time since the rally from the 200-day moving average of October 25. So was the rally a classic Bull Trap, luring in unsuspecting buyers as it has been gradually sold off? Or was the October 25 rally the big “whale”¹ buying that has been assumed?
Technically and psychologically, the $10,000 level has been rejected for now and the $9,000 level has been broken but not yet breached. The 20-day moving average and the recent 50.0% Fibonacci hold as support levels today. A move down through the current levels brings in the key supply zone at $8,500-$8,000, and the latest 61.8 Fibonacci level and daily trend line around $8,300. A move and hold over $9,500 and the higher time frame resistance zone over $10,000 will be required to test the summer highs over $12,000.
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