Skip to content Skip to sidebar Skip to footer


Last week, Crypto Twitter erupted with reports that “miners capitulated.” Indeed, the Bitcoin Hash Ribbons — an indicator tracking the health of the network’s hash rate — saw a bearish crossover, with the short-term moving average crossing below a long-term one, signaling that miners have stopped expanding their farms.

Related Reading: For First Time Ever, Bitcoin Set to go Into 2020 Halving in Bearish Action

Interestingly, however, the day after saw this crossover reverse, with miners stepping in at the eleventh hour to stop this signal from being etched into stone. Regardless, a top analyst has asserted that BTC remains on the “edge of a cliff,” citing the fact that this key indicator remains on the verge of flipping bearish.

Why Bitcoin May Be About to Return to $6,000, Maybe Lower

It seems that the “Crypto Winter” of 2018 has come back to haunt Bitcoin bulls in 2019.

Cole Garner, a popular cryptocurrency analyst, recently noted that miners are on the verge of capitulating, which is what happened in mid-November, just before BTC began to tumble from $6,000 to $3,000.

Miner capitulating, for those unaware, is when “small miners get backed into a corner when BTC price is low & the generation of mining hardware they use becomes obsolete.” The important part of this is that the capitulation of miners induces the sale of mined Bitcoin en-masse, pushing prices lower in a vicious cycle: “Undercapitalized miners panic sell, price dumps, longs get squeezed, stop losses cascade.”

To give this signal even more relevance, the bearish crossover of the hash ribbons in 2016 “kicked off an immediate 30% drop.” A 30% drop from current price levels would put Bitcoin in the $5,700 range — ouch. In other words, a bearish signal printed by this indicator could spell short-term to medium-term disaster for the Bitcoin market, despite the proximity of the halving. 

Perfect Buying Opportunity

While this is harrowing enough, BTC may present an impeccable buying opportunity after the capitulation takes place. Garner said that if the capitulation snowballs far enough, the cryptocurrency market will provide investors that stick around with a “generational buying opportunity,” adding that this may be the last time Bitcoin prices ever trade at such levels.

Of course, this is a bullish conjecture. Though, history rhyming would see Bitcoin find a long-term bottom at the point at which the capitulation turns into hope.

Related Reading: How the Unbanking of Former PayPal CFO by BoA Shows Bitcoin’s Merit
Featured Image from Shutterstock


Nick Chong , 2019-11-19 05:24:00

Source link

Leave a comment

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

Source link