Bitcoin prices remain stable on spot quotes, with minimal gains in the last trading week. In particular, prices are holding steady above $15.5k, but sellers have the upper hand from a downside perspective.
Technically, this preview will be held as long as prices are below the $17.5k and $18.5k resistance zone. The immediate support is at $15.5k, and presently, Bitcoin is in a bear flag and inside the November 8 and 9 bearish engulfing bear bars.
Since trading volumes are relatively low, gains of the past few days could also turn out to be a dead cat bounce, allowing traders to exit their longs. In this way, without sharp gains, current formation is a precursor for even deeper losses in the coming trading days.
El Salvador’s Confidence in BTC
Amid the ravages of the bear market, there have been worthy developments from the fundamental front.
El Salvador said they would move on with their plans of stacking Bitcoin and would be buying coins every day going forward. At the same time, they plan to proceed with their plans of raising $1 billion in blockchain bonds.
According to reports, El Salvador legislation calls for a digital asset and Bitcoin Fund Management Agency.
Bloomberg said funds will be used to,
“Create a legal framework to transfer digital assets that are used in public issuances in El Salvador, as well as regulate the requirements and obligations of issuers and providers of digital assets.”
Bitcoin Price Analysis
Bitcoin is up six percent from this week’s lows, and buyers are bullish, expecting more gains in the days ahead. This can be because of the series of higher highs relative to the lower BB signaling strength.
Since BTC bulls have failed to break above $17.5k and prices are inside the bearish engulfing bars of November 8 and 9, bears are in charge from an effort versus result perspective.
Already, the tight trade range means BTC is inside a bear flag, increasing the odds of further losses below this week’s support at $15.5k.
Conservative traders can wait for trade definition above $17.5k or below $15.5k before engaging, targeting $20k if buyers are successful, or $12k should bears press on and align with losses of early November.
Technical charts courtesy of Trading View. Disclaimer: Opinions expressed are not investment advice. Do your research.
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