FxNews—Bitcoin surged due to speculation about Donald Trump’s presidential win, which would favor cryptocurrency holders. As a result, BTC/USD jumped upward from $66,850, leaving a bullish Fair Value Gap behind. As of this writing, Bitcoin is trying to stabilize the price above the October 29 high of $73,590.
Bitcoin Technical Analysis – 6-November-2024
On the technical front, Bitcoin seems overpriced because the RSI 14 records show 76 in the description, meaning the market is overbought. Furthermore, the Awesome Oscillator signals divergence, meaning a consolidation phase could be imminent, backed by the Stochastic’s overbought signal.
As elaborated earlier in this bitcoin technical analysis article, the market is overbought. Hence, joining the bull market at this price, $74,500, is not advisable. Therefore, we suggest traders and investors wait patiently for the Bitcoin price to consolidate near the lower support levels or when it begins filling the bullish FVG.
BTC Price Risks Drop to 71660 as Key Support Tested
In this scenario, the immediate support is at $73.590. If BTC/USD dips below this support, a new consolidation phase will emerge, which could result in the price revisiting $71,660, followed by the November 5 high at $70,650. These supply zones provide a decent bid to join Bitcoin’s bullish market.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
