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Nov 27, 2019 at 17:59 // News

Bitcoin Cash is in a deadlock as the bears could easily break the support

Bitcoin Cash is under pressure with bears bent on breaking the support at $200. Since a week ago, sellers have been consistently testing the support to break it.


On November 25, a close attempt was made as the support was broken but the price pulled back immediately. Bitcoin Cash is oscillating between $197 and $210 at the bottom of the chart. 


Bitcoin Cash is in a deadlock as the bears could easily break the support while the coin depreciates. Sellers’ pressures have compelled the coin to fluctuate at the bottom of the chart. There is an indication that the price will drop to a low of $160 or $166 if support at $200 is broken.


Bitcoin Cash Indicator Reading 


The bearish pressure is ongoing on the support line of the channel. Nevertheless, if sellers push price below the support line and selling is sustained, BCH will drop seriously. The price may drop to the next support at $160. The RSI period 14 level 31 indicates that selling will continue as the coin reaches the oversold region.


Bitcoin Cash, December 27, 2019


Key Supply Zones: $320, $360, $400


Key Demand zones: $200, $160, $120


What is the Next Direction for Bitcoin Cash?


The bulls have succeeded in defending the support at $200. Meanwhile, the bears are unrelenting as the sellers put pressure on the buyers. The support level had been holding for the past three months. The bears have tested the $200 price level on four occasions making the support a strong one. However, a breakdown at the support will result in further depreciation. Bitcoin Cash will fluctuation if the support remains intact.


Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.

coinidol.com By Coin Idol , 2019-11-27 19:59:00 ,

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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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