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Bitcoin [BTC] rose $200 on Sunday as price broke above $9000. The psychological positive move along with green across the entire crypto market raises the sentiments of most traders towards the year-end.

However, it fails to hold the bullish psychological as the price has fallen back to $8950 levels. The price of Bitcoin [BTC] at 4: 30 hours UTC on 11th November 2019 is $8955.

Bitcoin Weekly Close

On a weekly scale, even after the positive move, BTC price closed on a red. According to Tone Vays, the weekly chart looks neutral, however, on a bearish count according to sequential analysis.

Similarly, on a daily scale as well, the 200-Day inability to break above the 200-Day Moving average brings it closer to a death cross with the 128-Day moving average.

He cites that the resistance for a bullish break-out this week out would be around $9600.

btcusd weekly chart
BTC/USD Weekly Chart on Bitstamp (TradingView)

Another Gap Fills on CME on the 4-Hour

The change in the price of Bitcoin over the weekend often creates a substantial gap with CME. As CME is one of the largest regulated exchanges for Bitcoin futures, it has a considerable effect on Bitcoin prices.

Moreover, with Bitcoin, it generally has a tendency to fill the price gaps with CME. The difference was about $215, as Bitcoin closed at $8885 on Friday. With the correction on Monday to about $8950 as filled most of the gap.

Moreover, the volume of the break was also not enough to justify a massive bullish breakout.

Bulls Still Scared of the Bears?

The bullish turn was accepted by the market contently as traders moved further long. Only a small percentage of short liquidations were noticed signaling a bullish inclination.

However, since Bitcoin fails to maintain the levels, about $5 million worth Bitcoin longs liquidates on BitMEX in less than 2 hours.

bitfinex and bitmex liquidations
Bitfinex and BitMEX liquidations (Source)

Technically, Bitcoin is not out of the clutches of the bears. First and foremost, the 200-Day Moving Average continues to act as resistance and is now rising, currently at $9240.

The market sentiments are largely bullish with December futures contracts selling at $9075 and a high long/short ratio on spot exchanges. The funding rate on BitMEX and Bitcoin basis on Okex is also positive with large magnitudes signaling strong bullish inclination. However, there is still a lack of momentum at the moment.

Do you think the strong bullish inclination is justified or bears are still strong? Please share your analysis with us. 

Summary

Bitcoin [BTC] Price Fails to Hold Above Weekly Close, $5 Mln Longs Liquidated on BitMEX

Article Name

Bitcoin [BTC] Price Fails to Hold Above Weekly Close, $5 Mln Longs Liquidated on BitMEX

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Bitcoin [BTC] rose $200 on Sunday as price broke above $9000. The psychological positive move along with green across the entire crypto market raises the sentiments of most traders towards the year-end.

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 , 2019-11-11 05:20:35 ,

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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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