To say the least, it has been a brutal week for Bitcoin (BTC). At the extreme, prices fell more than $1000 per BTC, leaving the markets wondering if this was the beginning of the end for cryptocurrencies. While the current situation looks bleak for BTC longs, there is a ray of hope. Values are stabilizing near the $5500 handle and may be poised for a late-November rebound.

Bitcoin (BTC) Futures: Technical Outlook

The daily November Bitcoin futures chart sums up the current bearish action and magnitude of Wednesday’s sell-off. For weeks, BTC had exhibited relative stability as formal approval of the first BTC ETF was put on the back burner by the U.S. Securities and Exchange Commission (SEC). As of Wednesday, price officially broke from its late-summer/early fall doldrums.

Here are the levels to watch for the near future:

• Resistance(1): 38% Current Wave Retracement, $5686
• Support(1): Swing Low, $5155
• Support(2): Psyche Level, $5000 (not pictured)

Overview: At the moment, one has to respect the bearish daily trend in BTC. However, it appears we are getting some consolidation near the $5500 level. In the event price hangs tough in this range, then an early week rebound and selling opportunity may setup from the 38% current wave retracement ($5686).

However, should we see a bearish close today, be on the lookout for a firm test of the $5000 level. Buyers stepped in on Thursday from $5155 and defended this area. If sellers lose the fight at $5500 then price will certainly revisit the $5000 level in the very near future.