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Bitcoin’s position within the lower-$7,000 region has been ardently defended by the cryptocurrency’s bulls over the past several hours and days, with the crypto’s overnight drop into the upper-$6,000 region being met with significant buying pressure that allowed BTC to post a sharp bounce to highs of $7,400.

It is important to note that this recent movement has further confirmed the notion that BTC is currently forming a bullish inverse head and shoulders pattern, but analysts are noting that the crypto needs to decisively break above $7,500 in order for a massive bullish rally to commence.

Bitcoin Bounces from Upper-$6,000 Region, But Finds Resistance at $7,400

At the time of writing, Bitcoin is trading up roughly 2% at its current price of $7,285, which marks a notable climb from its daily lows of $6,800 that were set last night during a sharp sell off.

The fact that this downwards movement was met with significant buying pressure confirms that this price region is a strong region of support, and this could bolster BTC’s price action in the near-term.

Following this sell off, Bitcoin was subsequently rejected at $7,400, signaling that this is a strong level of resistance for the cryptocurrency. Further supporting this notion is the fact that this is the price at which BTC’s rally from its recent lows of $6,500 stalled.

The Cryptomist, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that she believes multiple technical factors are pointing to the possibility that the crypto’s recent lows will mark a long-term bottom, with a movement to $11,000 possibly being in the cards.

“$BTC: Stopped out short in profits. Forget my $6.4 call. Triple bottom on RSI. Wedge Apex. Heikin Ashi Doji. Bottom could be in and change of trend towards $11k COULD be in progress. Will update on daily close,” she explained in a recent tweet while referencing the chart seen below.

Will Break Above $7,500 Catalyze Bullish Momentum?

In the near-term, the key level that analysts are watching is $7,500, as a decisive break above this level could confirm the bullish inverted head and shoulders pattern that BTC has been forming, potentially marking the crypto’s recent lows as a long-term bottom.

Galaxy, a popular cryptocurrency analyst on Twitter, concisely spoke about this level in a recent tweet, saying:

“Break $7500 and it’s showtime.”

The next few hours and days will likely elucidate whether or not Bitcoin will continue to trade within its recently established trading range between $6,800 and $7,400, or if its bulls will step up and confirm the hints of bullishness that are currently expressed on its chart.

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Cole Petersen , 2019-11-27 23:00:41

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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.

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

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