Insights > Technical analysis > Bitcoin drops to $8,000 but remains long-term bullish

Bitcoin drops to $8,000 but remains long-term bullish

20 November 2019

Temps de lecture 5 minutes

Julien Moretto

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Bearish week for the cryptocurrency market. Bitcoin lost 8.4% over the last seven days, falling back to the €7,250 ($8,000) level on November 20. This decline in Bitcoin has also stopped most of the increases observed last week on altcoins. However, since the beginning of 2019, Bitcoin’s return on investment has remained above 100%. The long-term bullish sentiment remains intact. An analysis of the weekly price action suggests that we are back on levels that are favourable for long-term buying. Here’s what to remember from the market this week.

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  • According to CoinGecko, market capitalisation is down sharply this week, to $220 billion from $241 billion last week.
  • The Bitcoin dominance decreases slightly to 66%.
  • According to a recent survey, the Millenial generation is much more interested in cryptocurrencies than in gold or real estate.
  • Big drop for the altcoins Stellar (XLM) and Cosmos (ATOM) which lose around 20%.
  • In the top 50, only Tezos and VeChain held up well with +3.1 and -1.7% respectively.

We invite you to discover our complete analysis in video (in french and dated from november 19):

Bitcoin (BTC)

Coinhouse recommendation: 

  • The situation is getting worse in Bitcoin… The break of the €7,700 ($8,500) level was our sell signal. This week, we are waiting. This downward price action takes place with very low trading volumes.
  • On November 20, the price of Bitcoin is trading at €7,250 ($8,000), which corresponds to the Fibonacci 0.786 retracement level of the sharp increase that occured at the end of October. This level is also a monthly pivot. If the price shows signs of reversal, new buys will be possible but in our opinion, it is still too risky at this stage.
  • If the $8,000 level breaks, the price could stop on the next support around €7,050/7,100 ($7,700/7,800). This level had supported the price for most of October and we never closed below it on a weekly basis. Same thing, if the price stabilises in this area and shows signs of reversal, it will be a buy signal.
  • The return of a mid-term bullish sentiment will only occur when the price rises above the $9,100/9,400 pivot. A clear downbreak of the €7,050 ($7,700) level will be a strong sell signal.

Ethereum (ETH)

Coinhouse recommendation: 

  • The price action remains relatively boring on Ethereum. He lost 6.6% over the last seven days, at €157 ($174) on November 20.
  • The price is dropping back without volume on our medium-term buying area identified since last July. But this week, we hold Ethereum without making any new buyings, as long as the Bitcoin price is on a bearish sentiment.
  • Only a bullish break of the €180 ($200) level with volumes will be a new buy signal.
  • A bear break of the €145 ($160) level with volumes remains a sell signal.

Tezos (XTZ)

Coinhouse recommendation: 

  • Tezos is almost the only crypto of the top 50 in the positive this week with +3.1%, at €1.08 ($1.20).
  • After its impressive 50% increase at the beginning of November, Tezos is showing a good consolidation pattern between the €1 ($1.10) pivot and the €1.20 ($1.30) resistance. This increase is mainly linked to a fundamental announcement on Tezos’ staking, which is very positive for this asset.
  • Nevertheless, given the current bearish sentiment on Bitcoin, we are waiting for the price to cross the €1.20 ($1.30) resistance to get our buy signal.
  • To maintain a medium-term bullish sentiment, the price must remain above the €1 ($1.10) pivot.

Top & flops of the week (top 50 marketcap)


1- Augur (REP) : +3,30%
2- Tezos (XTZ) : +3,10%
3- Basic Attention Token (BAT) : +0,30%


1- Bytom (BTM) : -24,70%
2- Cosmos (ATOM): -21,50%
3- Ontology (ONT) : -21,30%

Hot crypto news

  • Launch of the multicollateral DAI
    Until then, it was only possible to obtain DAI in exchange for Ethereum.
    It will be possible to use other assets to generate ICDs.
    By the way, the former DAI is renamed SAI.
    This will open the possibility of generating loans from any asset based on Ethereum.
  • The cryptocurrency market is severely illiquid
    According to CoinmarketCap, less than 40 cryptocurrencies have liquidity on the market.
    In total, market liquidity is around USD 500 million.
    These figures are worrying for investors, especially when it comes to getting out of the market.
  • Navigator Brave and BAT continue to grow
    Brave 1.0 has just been launched.
    Brave is now available on all platforms.
    The BAT rewards system continues to develop.
    Over the last month, the token has performed well compared to Bitcoin.
  • China continues to blow hot and cold
    No, China has not fully converted to cryptomones.
    Binance and Tron have just been banned from Chinese social media.
    In a speech, President Jiping accused cryptocurrencies of being instruments of fraud.
    You never know what to think…
  • Jean-Claude Trichet loves the Blockchain, hates Bitcoin
    The former Governor of the Banque de France considers the blockchain to be an ingenious invention.
    On the other hand, he sees no interest in Bitcoin, which is not “real”.
    He thinks that the Blockchain can be completely detached from the Bitcoin, while maintaining its safety.
    We will need to be explained in detail how…
  • The BRICS are thinking of creating their cryptocurrency
    Brazil, Russia, India, China, South Africa have formed an interest group in recent years.
    These countries are considering using cryptoassets to settle their mutual debts.
    Another stab wound in the supremacy of the US dollar as an international currency.
    According to the Russian government, the share of international trade settlements in dollars has decreased from 92% to 50% over the last five years!

Investors’ attention is drawn to the fact that the content of the articles does not constitute investment or financial advice.
Investing in cryptocurrencies involves a risk of total capital loss.
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