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Bitcoin (BTC) Trend Overwhelmingly Negative, Continue Selling?

  • Bitcoin price is slowly declining and it recently broke the $7,200 support area against the US Dollar.
  • The price is currently consolidating above $7,100 and likely to continue lower.
  • Yesterday’s key declining channel is still active with resistance near $7,320 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct higher, but sellers are likely to remain in control near $7,200 and $7,250.

Bitcoin price is showing signs of additional losses below $7,000 against the US Dollar. BTC remains sell on rallies until there is a daily close above $7,400.

Bitcoin Price Analysis

Recently, bitcoin made a couple of attempts to settle above $7,380 and $7,400 against the US Dollar. However, BTC failed to gain bullish momentum above $7,400 and remained well below the 100 hourly simple moving average.

As a result, the bears took over and the price declined below the $7,320 support. Moreover, there was a break below the key $7,200 and $7,180 support levels.

Finally, the price traded to a new weekly low at $7,108 and it is currently consolidating losses. An immediate resistance is near $7,180, and the 23.6% Fib retracement level of the recent decline from the $7,365 high to $7,108 low.

The main resistance on the upside is near the $7,240 level (the recent breakdown level). Besides, it is close to the 50% Fib retracement level of the recent decline from the $7,365 high to $7,108 low.

More importantly, yesterday’s key declining channel is still active with resistance near $7,320 on the hourly chart of the BTC/USD pair. Above the channel resistance, the main resistance is near the $7,400 level and the 100 hourly simple moving average.

Therefore, a daily close above the $7,400 barrier and the 100 hourly simple moving average is needed for a trend change. If not, bitcoin price is likely to decline further below $7,100.

The next key support area is near the $7,000 level. If the bulls fail to defend the $7,000 support area, the price could start a nasty decline towards the last swing low near the $6,500 support area.

Looking at the chart, bitcoin price is clearly following a downtrend below the $7,240 and $7,320 levels. Thus, there is a risk of an extended decline below $7,100. In the mentioned case, it would be interesting to see whether the bears are able to push the price below $7,000 in the first attempt.

Technical indicators:

Hourly MACD – The MACD is currently gaining strength in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining and it is near the oversold levels.

Major Support Levels – $7,100 followed by $7,000.

Major Resistance Levels – $7,250, $7,320 and $7,400.

The post Bitcoin (BTC) Trend Overwhelmingly Negative, Continue Selling? appeared first on NewsBTC.

NewsBTC , 2019-12-04 08:00:07 ,

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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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