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A peculiar formation on the long timeline charts signals an indifferent market as bulls and bears struggle for ultimate control of the market. In what is a first for weekly BTC/USD charts, the candle price closed below the 50-day Moving Average (MA) before seeing the following week’s candle close above the line at $7,400, forming a rather rare set up for traders.

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Are Bulls Ready to Take Over the Bears?

Looking at the weekly charts on BTC/USD, the price of Bitcoin looks lively following a green candle closing above the 50MA showing a possible market capture by the bulls. Despite the week starting Dec. 2 recording a red candle, bulls look keen to take on the bearish movement in the market.

According to crypto trader, Nunya Bizniz, the close above the 50MA is nothing but a bullish signal showing a bear trap forming as sellers’ pressure gets exhausted since the Oct. 25 bullish run.

However, the bullish case for the pioneer cryptocurrency is far from being a sure bet as another trader pointed out in reply to Nunyaz. According to the trader, the diverse indicators currently showing on charts using different parameters, is a call to show a possible move in any direction for BTC/USD.

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Notwithstanding, the MA indicator is a past indicator and usually shows conflicting views in predicting future movements in price.

Bitcoin Futures Premiums on a Rise

More bullish signals are forming on the charts as the premium on BTC price (difference between BTC futures and spot price) is on a hike. Looking premiums on the March 2020 settlement contracts, the premium spike from $120 on Nov.29 to above $170 USD as at time of writing.

The spike in premiums signals a short term upward run in price as spot price catches up with the futures – a bullish case for the coin, according to Luke Martin.

Summary

A rare bullish pattern on BTC/USD charts forms as weekly price closes above $7,400

Article Name

A rare bullish pattern on BTC/USD charts forms as weekly price closes above $7,400

Description

A peculiar formation on the long timeline charts signals an indifferent market as bulls and bears struggle for ultimate control of the market. In what is a first for weekly BTC/USD charts, the candle price closed below the 50-day Moving Average (MA) before seeing the following week’s candle close above the line at $7,400, forming a rather rare set up for traders.

Author

Lujan Odera

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Coingape

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cryptocoach

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Lujan Odera , 2019-12-02 14:33:07 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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