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Bitcoin (BTC) has continued inching lower following its recent bearish break below $9,000, which points to the possibility that bears are building strength as bulls fail to propel the crypto while it trades just a hair above its key near-term support level.

Analysts are now noting that Bitcoin may soon incur further losses as it nears the completion of a bearish EMA cross, which may mean that a movement to the lower-$8,000 region is imminent.

Bitcoin Sits Upon Key Support Level as Bears Build Strength

At the time of writing, Bitcoin is trading down marginally at its current price of $8,740, which marks a notable drop from its daily highs of $8,900 that were set overnight when bulls attempted to propel the crypto back to $9,000.

The swift rejection that came about following this overnight movement points to the fact that bears currently have an upper hand over bulls and may signal that further downside is imminent for BTC.

In the near-term, analysts anticipate this bearishness to lead BTC down to the mid-$8,000 region, with one analyst setting a near-term target at $8,400.

The Cryptomist, a popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, telling her followers that any break below the support that Bitcoin currently has at $8,400 could send the crypto plummeting to $7,100.

“$BTC: Support test on wedge incoming. I have two possible supports I am looking at: 8400 – 8500 regions. If this support fails, and this wedge is invalidated, we will possibly go towards my 7.1k target sooner than later,” she said while pointing to the charts seen below.

Will EMA Bear Cross Force BTC Lower? 

One technical formation that Bitcoin is currently forming may support any potential bearishness that analysts are watching for in the near-term, as the ongoing bearish EMA cross that BTC is close to confirming could push the crypto below its near-term support levels.

Big Chonis, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, while also musing about the various other technical factors that he is closely watching in the near-term.

“$BTC – Daily closed with a lot of mixed signals. MA50 support – MA200 resistance, MA100 about to bear cross MA200. Lower cloud span resistance, still just above ‘golden zone.’ Looking for that possible 5th wave down confirmation. I expect increased volume this week in #bitcoin,” he said while referencing the chart below.

How Bitcoin trades in the coming hours and days will have a significant impact on these technical formations and could provide analysts with significant insight into where the crypto is heading next.

Featured image from Shutterstock.

Cole Petersen , 2019-11-12 21:00:08

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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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