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Bitcoin (BTC) Hesitates But Further Recovery Above $7.2K Seem Likely

  • Bitcoin is currently trimming gains after struggling to clear the $7,400 barrier against the US Dollar.
  • The price is likely to stay above the $7,000 and $6,950 support levels in the near term.
  • There is likely a bullish flag forming with resistance near $7,170 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • There are chances of a nice upward move if the price surges above $7,200 and $7,400.

Bitcoin price is trading below a few key resistance such as $7,400 against the US Dollar. Having said that, BTC seems to be forming a bullish continuation pattern as long as $6,950 holds.

Bitcoin Price Analysis

Yesterday, there was a decent start of an upside correction from the $6,535 low against the US Dollar. BTC climbed nicely above the $6,800 and $7,000 resistance levels.

Besides, it spiked above the $7,200 resistance area and the 100 hourly simple moving average. However, the price struggled to continue above the $7,375 and $7,400 resistance levels.

A high was formed near $7,372 and the price is currently trimming gains. Bitcoin traded below the $7,200 level and the 100 hourly simple moving average. Moreover, there was a break below the 23.6% Fib retracement level of the recent rise from the $6,535 low to $7,372 high.

On the downside, there are a few key supports near the $7,025, $7,000 and $6,950 levels. The main support for the current wave is near $6,950 since it is near the 50% Fib retracement level of the recent rise from the $6,535 low to $7,372 high.

If there is downside break and close below $6,950, the price is likely to resume its decline. The next supports are near the $6,660 and $6,540 levels. On the upside, an initial resistance is near the $7,150 level and the 100 hourly SMA.

More importantly, there is likely a bullish flag forming with resistance near $7,170 on the hourly chart of the BTC/USD pair. Therefore, an upside break above $7,200 might set the pace for more upsides and recovery.

The main resistance area is near the $7,375 and $7,400 levels. A successful close and follow through above $7,400 will most likely set the pace for a strong recovery.

Looking at the chart, bitcoin price is holding a couple of important supports near $6,950. As long as there is no close below $6,950, there are chances of upside continuation above $7,200 and $7,400.

Technical indicators:

Hourly MACD – The MACD is slowly moving back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.

Major Support Levels – $7,000 followed by $6,950.

Major Resistance Levels – $7,200, $7,375 and $7,400.

The post Bitcoin (BTC) Hesitates But Further Recovery Above $7.2K Seem Likely appeared first on NewsBTC.

NewsBTC , 2019-11-27 08:00:22 ,

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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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