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Bitcoin [BTC] price slides over $300 on Monday to test $8000 as support. The price of BTC at 2: 30 hours UTC on 19th November 2019 is $8179.

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BTC/USD 1-Day Chart on Bitstamp (TradingView)

The death cross between the 100-Day and the 200-Day Moving Average acted as a strong bear signal as price slid as prior support. The bear cross with the 128-Day moving average is getting closer to a realization as well. A bounce before that is a possibility; however, the trend at the moment is bearish.

The prior swing lows around $7700, and $7300 will cover the last areas of support before further breakdown.

Nevertheless, the market still appears inclined towards long. On BitMEX, there is a slight inclination of short orders (52%). However, funding rates are still positive. On Okex and Bitmex, the markets continue to be in contango. The ratio of long/short ratio is highest on Bitfinex with 80% longs and 20% short. On Okex, the BTC basis is greater than $10, signaling a long interest.

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Bitcoin Derivative Basic Stats (Long/Short) from 3 Exchanges (Source)

Less than 6 Months to Halving

Bitcoin [BTC] halving is scheduled for May in 202o. The halving of rewards to miners has been mostly bullish in the past; It has acted as a strong fundamental reason for a price run.

Expert on-chain analyst, Willy Woo explained why “This is a unique setup.”

He notes that the reversal from $14000 is bearish, which is further accelerated by miner capitulation. Hence, he suggests that Bitcoin is in a short term bearish market.

Moreover, while the price looks disruptive for the miners, the evolution of the market is supporting their long term existence. The futures markets allowed traders to hedge against their losses at $13,000. Hence, the miners might not be taking a considerable loss. Nevertheless, in a bearish setup, it adds to the selling pressures.

Do you think a Bitcoin bounce is probable? Please share your views with us. 

Summary

Bitcoin [BTC] Breaks down Below $8200 - Are Miners Causing the Bear Move?

Article Name

Bitcoin [BTC] Breaks down Below $8200 – Are Miners Causing the Bear Move?

Description

Bitcoin [BTC] price slides over $300 on Monday to test $8000 as support. The price of BTC at 2: 30 hours UTC on 19th November 2019 is $8179. 

Author

Nivesh Rustgi

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CoinGape

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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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Nivesh Rustgi , 2019-11-19 03:35:48 ,

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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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