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Bitcoin [BTC] undergoes massive volatility in price as bulls and bears continue their tug of war around $7000.

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The Upbit hack spread through the media, causing a lot of stir in the crypto markets. What followed was a drop in Bitcoin prices.

Whale Panda, crypto analyst, and investor tweets

In all seriousness though, this hack is small. No reason to make it sensationalistic with emojis and exclamation marks. $50 million in today’s market isn’t much. Yes, it’s newsworthy, but it isn’t that big of a deal.

The 1-hour chart developed a bullish chart pattern, confirming a move to the upside. The inverse head and shoulders pattern is bullish with a target of just above $8000. Mati Greenspan, leading crypto analyst hints on the pattern in this tweet.

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btcusd
BTC/USD 1-Hour Chart on Bitstamp (TradingView)

The stop loss for the trade would ideally be around the neckline. The breakaway point is around $7200 for the next few hours. The trade is witnessed on a one hour chart. Hence, the continuation of the trade towards the long term is not guaranteed.

Moreover, the long term trend in Bitcoin [BTC] is still bearish.

btcusd weekly
BTC/USD 1-Week Chart on Bitstamp (TradingView)

The traders are long with a conviction as the funding and premium rate is high at BitMEX. The BTC basis on Okex also turned positive from high negative magnitudes after the definite break from Upbit’s news. Overall, the percentage of longs in the market (Bitfinex, BitMEX, Binance) grew by over 60%.

Nevertheless, Upbit FUD caused significant volatility in the market. An instant drop of $300 followed it. Hence, while the bulls are looking for a run, it seems like they might lack the strength at the moment.

btcusd 4-hour
BTC/USD 4-Hour Chart on CME (TradingView)

Furthermore, Bitcoin [BTC] futures chart on CME is also facing resistance from the descending channel and parabolic downwards curve.

The price of Bitcoin [BTC] at 14: 00 hours UTC on 27th November 2019 is $7280.

Do you think Bitcoin will break above $7500 or not? Please share your analysis with us. 

Summary

Bitcoin [BTC] Bullish Pattern Targets $8,000 - Here are the Resistances and Support

Article Name

Bitcoin [BTC] Bullish Pattern Targets $8,000 – Here are the Resistances and Support

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Bitcoin [BTC] undergoes massive volatility in price as bulls and bears continue their tug of war around $7000.

Author

Nivesh Rustgi

Publisher Name

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 , 2019-11-27 16:28:11 ,

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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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