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  • Bitcoin embarks on a gain-trimming mission amid the ongoing hunt for a bottom.
  • $7,000 – $7,1000 becomes a short-term buy zone for traders hoping to sell at $7,400 and $7,700 respectively.

Bitcoin continues to narrow down towards $6,000. The down trend is clear shown by taking a broader technical picture using the daily chart. Bitcoin has been recording a series of lower highs and lower lows since the majestic recovery from levels close to $3,150 in December 2018 to highs around $13,800 in June, 2019. There have been episodes of recovery, however, the bears seem to always have the last laugh.

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In the recent dive to regions slightly above $6,500, Bitcoin reversed the downtrend clearing several barriers including, $6,800, $7,000, $7,400 as well as $7,800. A further correction above $8,000 would have cemented the bulls’ presence on the market. However, Bitcoin bears took advantage and enacted a gain-trimming mission.

BTC/USD daily chart

BTC/USD daily chart
BTC/USD daily chart by Tradingview

In the last weekend, price action remained drab as Bitcoin sort for support at $7,400 and $7,300 respectively. The downside momentum continued into the new week, with BTC diving further below $7,200. Fortunately, the buyers waiting to buy at $7,000 – $7,100 are beginning to increase number. While a reversal has occurred above $7,200, it is not enough to sustain movement past $7,300.

Meanwhile, the break below the bearish flag pattern support break is adding fire to gasoline. The prevailing trend is strongly bearish. The high volatility coupled with the downward slopping RSI suggests that the bearish grip will only get stronger.

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On the upside, $7,300 is the immediate resistance. Trading above this zone could easily see Bitcoin scale the levels above $7,400 and $7,500. However, Bitcoin requires a catalyst towards $8,000, a move that will eventually place it in upward trajectory assisted by impending the falling wedge pattern breakout.

Bitcoin Key Technical Levels

Spot rate: $7,259

Relative change: -143

Trend: Bearish

Volume: Expanding

Volatility: High

Support: $7,100, $6,800 and $6,500

Resistance: $7,300, $7,400 and $7,700

Summary

Bitcoin: Continued Break Down Unstoppable - BTC/USD Could Hit $6,500

Article Name

Bitcoin: Continued Break Down Unstoppable – BTC/USD Could Hit $6,500

Description

Bitcoin embarks on a gain-trimming mission amid the ongoing hunt for a bottom.
$7,000 – $7,1000 becomes a short-term buy zone for traders hoping to sell at $7,400 and $7,700 respectively.

Author

John Isige

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Coingape

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cryptocoach

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.

Disclaimer
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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John Isige , 2019-12-02 15:28:34 ,

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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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