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  • Bitcoin price is back to where it started and trading below the $7,380 resistance against the US Dollar.
  • The price is currently under pressure, but it is likely to hold the $7,100 support area.
  • There is a short term contracting triangle forming with resistance near $7,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could rise again towards the $7,380 and $7,400 resistance levels, where sellers might emerge.

Bitcoin price is back in a bearish zone below $7,400 against the US Dollar. BTC is likely to remain capped below the $7,400 and $7,440 resistance levels.

Bitcoin Price Analysis

Yesterday, bitcoin started a strong rise from the $7,080 support area against the US Dollar. BTC price rallied sharply above the $7,200 and $7,300 resistance levels.

Moreover, it surged above the $7,580 resistance area and the 100 hourly simple moving average. However, it failed to remain above $7,500, resulting in a fresh decrease. The price declined heavily below $7,300 and trimmed most its recent gains.

A swing low was formed near $7,068 and the price is currently consolidating losses. It is trading near the 23.6% Fib retracement level of the recent decline from the $7,797 high to $7,068 low.

Besides, there is a short term contracting triangle forming with resistance near $7,220 on the hourly chart of the BTC/USD pair. It seems like bitcoin price might break the triangle resistance and trade above the $7,300 resistance.

The next resistance is near the $7,320 level and the 100 hourly simple moving average. The main resistance area is near the $7,360 and $7,380 levels. The 50% Fib retracement level of the recent decline from the $7,797 high to $7,068 low is also near the $7,440 level.

Therefore, a successful break above the $7,440 resistance is needed for a decent rise in the coming sessions. In the mentioned case, the price may perhaps revisit the $7,580 resistance or the 76.4% Fib retracement level of the recent decline from the $7,797 high to $7,068 low.

Conversely, the price could decline again below the $7,180 and $7,150 levels. The main support is near the $7,000 handle, below which there is a risk of a significant decline.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is clearly back in a bearish zone, but it could rise again towards $7,380 or $7,400. Finally, it is likely to test or trade below the $7,000 support.

Technical indicators:

Hourly MACD – The MACD is slowly moving into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently rising and it could move above the 50 level.

Major Support Levels – $7,100 followed by $7,000.

Major Resistance Levels – $7,380, $7,400 and $7,580.

Aayush Jindal , 2019-12-05 08:00:47

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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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