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Bitcoin (BTC) is more likely than before to test the $8,000 mark for a number of reasons. First of all, the price is still holding up quite strongly above the $7,257 support. This has now increased the probability of a rally higher to the 38.2% fib extension level. It could face resistance there but that move is more likely to lead to further upside as we would have to see a test of the previously broken trend line support which has now turned into a trend line resistance. Barring a decline below the current support, BTC/USD is poised to rally significantly higher from here in the near future.

The majority of analysts have once again started to talk about the risks facing Bitcoin (BTC) which is a reason in itself that this rally might have some juice left in it. There is no denying that Bitcoin is eventually expected to decline much lower from current levels potentially below $3,000 but that is very unlikely to happen while everyone is expecting it. Regardless of any short-term bullishness, we can see that there is still a lot of fear in the market which has made the bears more confident. A move to the 38.2% would certainly inflict a lot of pain on the bears just before a major decline but it would be a move to the 61.8% that would take the bears by a complete surprise as it did when the price of Bitcoin (BTC) pumped by more than 43% in a matter of just two days.

The EUR/USD forex pair has once again rallied past the 38.2% fib extension level which is a major bullish development for this pair and therefore for Bitcoin and the rest of the cryptocurrency market. The focus now should remain on this pair staying above the 38.2% because the last time it climbed above it, we saw a subsequent decline below it. However, in technical analysis the more a certain level is tested the higher the probability that it will eventually be broken. We have now seen the pair rally past the 38.2% again which could mean that this time it might end up rallying much higher.

While recent developments in this pair are bullish for Bitcoin at the moment, it is important to note that a move to the downside in this pair would create similar circumstances that saw BTC/USD decline sharply just recently. This pair would thus be instrumental to the rise and fall of Bitcoin in the near future. Investors would be better off keeping an eye on this pair for future movements in the cryptocurrency market. The 4H chart for EUR/USD also shows the pair struggling to break past the 200 MA. If we have a successful break past the 200 MA, we would have a green signal to consider being long on the cryptocurrency market. On the other hand, if the pair faces a strong rejection at the 200 MA, we can expect a decline below the 38.2% down to the 61.8% which will be devastating for the cryptocurrency market.

Jefe Caan , 2019-12-03 17:00:00 ,

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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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