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At press time, Bitcoin prices are unexpectedly up, surging by $500 in one hour. But given what lies ahead and the role of BTC going forward, analysts are confident that there is more room for expansion heading into a definitive 2020.

Before then, all eyes are on President Trump and China’s negotiators and what the UK General Election has to offer uncertain traders, ready at a moment’s notice to shift funds to safe haven assets like Gold and now Bitcoin.

Will the Equity Market Sell Off?

The equities market sits at a precarious position. With the focus fixed on President Donald Trump–whose policies, while protectionist, he argues, benefits the American economy, could hurt portfolios if a deal isn’t struck within 10 days. Its aftermath could see the S&P 500 and other gauging indices break down, dragging the global economy with it.

Such a scenario will be perfect for BTC which by design censorship resistant thanks to its global, decentralized nature giving it a store of value status, a preserve for Gold, a non-interest yielding but scarce asset of which BTC is christened after.

No-Deal by Dec 15 and More Tariffs Expected

Given, today’s jump in BTC prices, less than 24 hours after President Trump said he had no fixed deadline for the US-China trade deal could be hinting of a real possibility of an impasse.

The markets, according to reports, are already tizzy and predictably grappling with a prospect of a no-deal that will throw the equity into a downward spiral as the US unleash another round of damaging tariffs on Dec 15. Commenting on President Trump’s comments, UBS Art Cashin told CNBC:

“I don’t think it would cause a big swing one way or another. I think they would say, obviously negotiations are still going on. The reason you’ve had two pretty significant down days is, people were believing there would be a deal by the end of the year. Now, that’s clearly in doubt and that’s where we’re going.”

Adding that:

“Then there’s another sell-off. If they put on additional tariffs and he bumps them by 10% or 15%, a sell-off but nothing severe. 50% or something like that? Better put on your helmet.”


Bitcoin (BTC) Spikes A Day after President Trump’s Comments

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Bitcoin (BTC) Spikes A Day after President Trump’s Comments


Bitcoin prices are unexpectedly up less than 24 hours after President Trump said he had no deadline for the US-China trade deal.


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 , 2019-12-04 18:16:23 ,

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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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