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Bitcoin [BTC] price went through another roller coaster with a 4% followed by an equivalent drop in less than 8 hours. On Wednesday, the price jumped from $7150 to a high of log a high at $7780, marking an increase of 8.8%. The sell-off later began at an even faster rate, recording two long bullish candles on the hourly chart.

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Mati Greenspan, an expert financial and crypto market analyst, humorously described the formation that seems to have deviated from the Bart-Simpsons pump and dump pattern. He tweeted, 

Nevertheless, while the pattern is comical, the price volatility isn’t. On a daily scale, the price action recorded a shooting star candlestick. It represents a failed attempt at a bull run as the wick of the candle is very long compared to the body.

Sawcruhteez, a crypto analyst and trader, noted that the price action on such a short time-frame “does not look good,” suggesting a continuation of bears.

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

Since the market sentiments were primarily bullish on the move, the shooting star pattern does signal the bears. The trading volume was also not significant enough, and as the candle closed as red, the bull action has been completely negated.

Bears Prevalent All Across the Markets?

Nevertheless, the liquidation of longs on BitMEX was not enough to cause another squeeze. The 24-hour settlement reveals that the market is mainly bearish as we see a more substantial liquidation of short orders than that of long orders.

bitmex liquidations
Bitcoin XBT/USD BitMEX Liquidations (Source)

The volatility in the market is also drying up the volatility in the market as the open interest sees another drop on Okex.

Crypto Fibonacci, a crypto trader, tweeted,

Squeeze indicator is showing loss of momentum for bears now… Key are to watch is the 78.6 Fib retracement at 6814.

The price of Bitcoin at 4: 15 hours UTC on 5th December 2019 is $7199. On the CME charts (which are slightly skewed as they skip weekend trading), the 50-Day moving Average is coming close to the 200-Day Moving average, another bearish signal with the death cross.

The only hope the bulls have is that the price holds through the sell-off, as they can make a move after bear exhaustion. The previous swing lows and the bearish trendline support are at $6515 and $6200, respectively.

Where do you think the consolidation or reversal will begin? Please share your views with us. 

Summary

Bitcoin [BTC] Logs Shooting Star after Pump to $7780 as Bears Take Full Control

Article Name

Bitcoin [BTC] Logs Shooting Star after Pump to $7780 as Bears Take Full Control

Description

Bitcoin [BTC] price went through another roller coaster with a 4% followed by an equivalent drop in less than 8 hours.

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 , 2019-12-05 06:39:02 ,

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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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