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On Wednesday morning, it seemed as though things were about to go south for the Bitcoin market yet again. For those who missed the memo, notable Korean cryptocurrency exchange Upbit revealed that it had been hacked for $50 million worth of Ethereum (ETH), sparking an immediate 2% sell-off that some described as a “black swan” event that could tank this market for weeks.

Related Reading: Eerie Bitcoin Fractal Suggests Bottom in at $6.6k, Surge to $8k Likely

Contrary to these fears, though, Bitcoin jumped. In fact, after hitting $6,800 on Wednesday morning, the cryptocurrency shot all the way back up to $7,600 — a nearly 15% move. Though the bullish momentum has paused since then, with BTC falling slightly to $7,500, many say that the fact that Bitcoin has maintained its gains is a sign that a short-term bull case is starting to grow for the crypto market yet again.

Building Bitcoin Bull Case

Bitcoin’s bull case is rapidly building, according to an array of recently-published analyses. Former eToro analyst and founder of Quantum Economics Mati Greenspan noted that BTC is resting the neckline of a bullish inverse head and shoulders pattern as the price has entered an extremely short-term bull flag, which has a high likelihood of breaking higher.

“Past performance is not an indication of future results, but as far as TA goes, this setup is extremely bullish,” Greenspan wrote in reference to the chart below.

It isn’t only that. Per previous reports from NewsBTC, analyst Stillman noted that Bitcoin’s price action over the past few days looks much like it did during the bottom on December 15th, 2018 at $3,150.

If the fractal plays out in full, Bitcoin could easily rocket back into the $8,000 price range by the end of the week, which would mark a 10% surge from the current price point of $7,200.

Related Reading: Crypto Tidbits: Bitcoin Dives Under $8,000, Fidelity Bags Trust License, SEC Takes Second Look at ETF

Not So Fast: Fractal & Resistance Analysis Implies Downside

While there is a growing bull case for a bounce to $8,000, Bitcoin is still seeing a few bearish signs. Trader Chonis recently noted that “it’s hard to get bullish” with BTC remaining on the underside of the key $7,800 price level, which has acted as both key resistance and support on multiple occasions over the past year. BTC will need to flip $7,800 into support on the one-day chart for a bullish move to be confirmed, some analysts say.

That’s not all. The below analyst recently noted that Bitcoin’s price action from the start of the year to now eerily resembles the BTC bull and bear market of 2014-2015, marked by a parabolic rally, a fast breakdown, potentially recovery, then a series of moves lower. This fractal playing out in full will see Bitcoin hit the $5,000 range by the start of 2020.

Related Reading: Altcoin Returns to ICO Price After 11,100% Run: Bitcoin Dominates Crypto Market
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Nick Chong , 2019-11-28 14:00:33

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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.

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Nick Chong , 2019-11-10 12:00:38

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