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People talking about Bitcoin (BTC) free falling to $3,000 are more unreasonable than those who are bullish, expecting prices to soar back to $20,000. This is the debatable opinion of a leading crypto analyst, CryptoDonalt, who explains that at spot rate, BTC is at a level ground.

Overreactions to Downside and Upside

CryptoDonalt says that the super bull run of 2017-when BTC prices erupted from $200 to $20,000, will take some time to “digest”, and market participants were merely overreacting in both instances when prices tumbled to $3,200 in late 2018 and rallied to $14,000 in mid-2019.

To $20,000 or $3,000

Whether BTC will rally or not is a source of discourse. Permabulls and no-coiners are locked in a never-ending argument when opposing camps lay down reasons as to why they are confident of their stance.

However, one thing is clear. Bitcoin will be a go-to digital asset even if the number of organic searches in countries like China, where crypto trading is barred but nonetheless strategic, is dropping, insinuating a fall in interest on a valuable digital asset stocked by Chinese merchants.



A shake out for weak Miners

As it is, BTC is at a crossroads. While there is optimism that it will stabilize, bottom up and edger higher ahead of halving, it will also be marked by the US elections, expected to be hot and highly competitive. So far, its performance has been dismal characterized by low trading volumes.

Bitcoin BTC
Bitcoin (BTC) Performance

Week-to-date, the coin is down 10% against the resurgent greenback forcing it below the main support line at $8,000. As traders search for direction and double guess maturing regulators’ position, weak miners are already feeling the brunt of low prices, with some reported to have capitulated as mining simply becomes unprofitable.

BTC Could Slide Back to $4,500 Before Rallying

Discussing Bitcoin’s outlook, Willy Woo, an on-chain analyst, and Tone Vays, a trader, projected that BTC could tumble to as low as $4,500, a 71% fall from this year’s high before prices bottom up as the market prepares for May 2020 halving.

Already Tone Vays is advising his followers in Telegram cautions saying:

“I’m totally back in cash now. There doesn’t seem to be obvious sign of reversal. Going to sit on the sidelines until there is more indication.”

Woo’s and Vays’ assessments could prove to be the antithesis of CryptoDonalt’s position more so if the latter’s analysis came to pass.


Bitcoin (BTC) At a Middle Ground, $3K Was an Overreaction to the downside

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Bitcoin (BTC) At a Middle Ground, $3K Was an Overreaction to the downside


People talking about Bitcoin (BTC) free falling to $3,000 are more unreasonable than those who are bullish, expecting prices to soar back to $20,000.


Dalmas Ngetich

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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.

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 , 2019-11-21 13:53:09 ,

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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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