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After incurring tremendous volatility throughout the latter part of October and the majority of November, Bitcoin appears to have now entered a period of consolidation as its bulls and bears send BTC between the upper and lower boundaries of a tight trading range.

This period of sideways trading may soon come to an end, however, as one analyst is now noting that Bitcoin is currently expressing multiple bearish signs that could spell trouble for its near-term price action.

Bitcoin Inches Higher as BTC Enters Consolidation Phase

At the time of writing, Bitcoin is trading up just under 1% at its current price of $7,350, which marks a slight decline from its daily highs of $7,400.

In the short-term, it appears that Bitcoin has established the $7,400 region as a level of relative resistance, whereas the mid-$7,200 region appears to be a level of support for the cryptocurrency.

This has led to a bout of sideways trading over the past few days, which marks a notable shift from the volatile trading that has been seen on a consistent basis over the past several weeks, starting with its major rally from lows of $7,300 to highs of $10,600 in late-October.

Following this rally, the volatility incurred by BTC mostly favored bears, as it has since retraced virtually all of the gains that were incurred during this price surge.

How Bitcoin responds to its current trading range may set the tone for how it trends throughout the final few weeks of 2019, which could subsequently impact how it kicks of 2020.

BTC Overwhelmingly Bearish from a Technical Perspective, Claims Analyst 

Hsaka, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that most of Bitcoin’s technical formations point to the possibility that significantly further losses are imminent.

“$BTC Exhibit I: This was probably the cleanest one till now, lot of confluence. • OI dip on impulse • Asks moving down with price • Ran yesterdays high (7421) • Closed below weekly open (7400) • Consecutive S/R flips without any reclaim,” he noted while referencing the chart seen below.

Assuming that bulls fail to garner any notable momentum and break out of this range, the cryptocurrency may soon see significantly further losses that send it back down towards its recent lows of $6,500.

Featured image from Shutterstock.


Cole Petersen , 2019-12-03 23:00:03

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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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