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Warning sirens have been sounded. As observed by one key Bitcoin (BTC) price enthusiast, the dreaded “Death Cross” has formed on the 4HR time frame of the BTC/USD technical price chart. The Death Cross is interpreted by chartists as a pointer that signals the beginning price slumps.

In the 4HR chart, the 50-day moving average has fallen below the 200-day moving average. Ironically, the X-pattern is forming when most traders are bullish, expecting October’s price action to continue as BTC prices edge higher.

What is a Death Cross?

Often, the Death Cross can happen in any stage of a typical market cycle.

First, when prices are peaking. During this exhaustion, prices of the asset, in this case, BTC fall, forcing the short-term moving average to fall over the long-term moving average, the 200-day MA. Second, after a period sustained downtrend. Here, the uptrend is over and prices are retracing marking a climactic sell phase where asset prices drop dramatically as bears step up, forcing lower lows.

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Bitcoin (BTC) Has Opposing Camps

There are lingering concerns that October’s uptick meant prices are “priced-in” in anticipation of May 2020 halving. Next year’s halving, however, has attracted different and sometimes diverging opinions.

On one end, optimists are confident that BTC prices will soar to as high as $141,000 is past trends are anything to go by. Advising this stand is the continued labeling of Bitcoin as a logarithmic asset. The prices of these tradeable assets bearing these properties are known to spike and taper with time before plateauing.

Away from price charts, there is more than what meets the eye. Bitcoin halving will lead to a reduction in issuance from 12.5 BTCs to 6.25 BTCs and assuming a constant demand, the only way up for Bitcoin would be up.  Secondly, China’s U-turn is a huge boost for blockchain projects and specifically Bitcoin.

Yet on the other opposing end, there individuals and mostly no-coiners who are non-believers. Their position is based on the energy consumption requirements of Bitcoin nodes and the lack of the so-called “intrinsic value.” Because of this, they strongly believe that Bitcoin is not the future of money, not viable and over-valued, ready to slump to zero.

State of BTC

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Bitcoin (BTC) Price Performance

At the time of writing, BTC is steady against the USD and ETH. Adding 7 percent against the greenback in the last month, the coin is retracing. Clear support is at $8,500. Technically, any drop below this psychological mark could spur sellers at October 2019 lows.

Summary

Bitcoin (BTC) Death Cross on the 4 hr Chart, Fall Imminent?

Article Name

Bitcoin (BTC) Death Cross on the 4 hr Chart, Fall Imminent?

Description

As observed by one key Bitcoin (BTC) price enthusiast, the dreaded “Death Cross” has formed on the 4HR time frame of the BTC/USD technical price chart. The Death Cross is interpreted by chartist as a pointer that signals the beginning price slumps.

Author

Dalmas Ngetich

cryptocoach

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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Dalmas Ngetich , 2019-11-15 12:38:19 ,

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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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