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Bitcoin [BTC] price failed to break above $8000 as it witnesses bear reversal at $7870.

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On the spot markets, the total fall in Bitcoin’s price in October was $1599 (17.48%) as it closes at $7550.

On a weekly scale, the closing was positive after four consecutive weeks of losses. Nevertheless, Bitcoin [BTC] is looking to find support from the 50 and 128-period moving average at around $7250-$7300.

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

CME Bitcoin Futures for November closed at $7800. A 16.17% drop in the month of October.

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The price of Bitcoin [BTC] at 3: 45 hours UTC on 2nd December 2019 is #7363.

Traders Going as Long

The open interest in the market is subsiding as traders grow increasingly uncertain of the direction. While the fundamentals are still bullish, the market for Bitcoin seems to be drying up.

btcusd open interest
Bitcoin [BTC] Derivatives Open Internet on Okex

Nevertheless, as Bitcoin comes back to $7500, some traders seem to be going long for a cheaper bid. While it is a positive for a buy wall support. However, it can be an adverse signal as Crypto trader XC pointed out,

Longs minus shorts quietly approaching a new ATH on Bitfinex. Back in 2018 this was the ultimate short signal according to CT.

Is the Bottom In?

The long term bearish channel is still intact as Bitcoin [BTC] has broken below the mid-line of the channel. Until almost the fortnight, the low of the channel would be around the swing-lows at $6515. Moreover, a break below it could further ring bearish alarms.

The 128-Day Moving Average also logs a bearish cross with the 200-Day MA.

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

Another expert trader, Josh Rager, tweeted,

$BTC looks like a reversal with this follow through break down

High time frames don’t look great. Traders keep trading and hodlers keeping hodling

The price was looking relatively bullish throughout the week as it sought to break above $8000. However, it reverses to touch a low at $7233. Hence, a re-test of lows or long periods of consolidation can be expected in the short term.

Do you think the bulls will to able to keep the swing lows? Please share your views with us. 

Summary

Bitcoin [BTC] Monthly and Weekly Close Below $8000 Leaves the Bulls High and Dry

Article Name

Bitcoin [BTC] Monthly and Weekly Close Below $8000 Leaves the Bulls High and Dry

Description

Bitcoin [BTC] price failed to break above $8000 as it witnesses bear reversal at $7870. 

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 , 2019-12-02 05:56:39 ,

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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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