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It was a crypto bloodbath. Double digit losses posted on a week-to-date basis coupled by gloomy predictions, Bitcoin (BTC) is suppressed. The path of least resistance in the short-term could be southwards but if bulls manage to clear the $7,300-$7,500 resistance zone, previous support, bulls may flow back. This is the opinion of one influential crypto analyst, LomahCrypto.

Bitcoin HODLers Suffer

At the time of writing, it is evident that the market sentiment has shifted as Bitcoin prices treads below $8,000. In the last week, BTC has been obliterated by the greenback, losing a massive 15%. However, on the bright side, the coin is up against ETH, adding 2 percent.

Bitcoin BTC
Bitcoin (BTC) Price Performance

Most noteworthy is that the stellar gains made after Chinese Premiere, Xi Jinping, announcement of China’s positioning as a leading hub for blockchain and distributed ledger technology have been completely reversed.

With market sentiment bearish and risk averse traders rushing to the exits, investors and traders are left in the limbo, wondering whether prices will falter going forward or become steady, even recovering yesterday losses.

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Analysts are Split

Technically, analysts’ opinions are split. On one hand, there are permabulls, confident that yesterday’s losses marked the end of a bearish leg.

What could happen in the next few days, in their optimistic view, is BTC trading within a range before finally edging higher as bulls flow back in the direction of October trend.

Behind this reasoning is their citation of sharp trading volumes that accompanied yesterday’s candlestick and fundamental events scheduled in the next few months as Bitcoin halving and a struggling economy that can at any time slip to a recession. The uptrend, in their analysis, is intact.

On the other hand, bears predict further losses. Evidently, the break below Oct lows and the psychological $8,000 mark dealt a blow to buyers. And like bulls, losses below $7,500 were behind high trading volumes.

This alone is enough to justify a breakout. If bears pile up their position, shorting on every high, it appears that BTC would easily tumble to $5,500-$6,000 support area, in a retest of Q2 2019 lows.

Will the Bear Breakout Be Confirmed?

Over all, LomahCrypto’s view is plausible. A convincing reversal behind Nov 22 highs would push prices above $7,300 into the $7,600-7,000 zone.

Bitcoin BTC
Bitcoin (BTC) Price Chart

The result will be a double bar bull reversal pattern fading yesterday’s candlestick, a sign of bears. On the flips side, a confirmation of yesterday’s losses thrusting prices below $7,000 will be more pain for HODLers.

Do you think Bitcoin bulls will flow back and lift prices to $7,300? Let me know your thoughts in the comment section below.

Summary

Bitcoin Analysis: A reclaim of $7,300 Will Trigger Bulls

Article Name

Bitcoin Analysis: A reclaim of $7,300 Will Trigger Bulls

Description

Bitcoin (BTC) path of least resistance in the short-term could be southwards but if bulls manage to clear the $7,300-$7,500 resistance zone, previous support, bulls may flow back

Author

Dalmas Ngetich

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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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Dalmas Ngetich , 2019-11-23 13:15:26 ,

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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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