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  • Bitcoin must defend $7,000 to avert a possible spiral targeting $6,000.
  • The formation of a symmetrical triangle suggests that a rally towards $8,000 is in the offing.

Bitcoin has managed to defend the crucial support at $7,000. The downside price action follows a rejection from levels around $7,900. Bitcoin recovered significantly, pushing against several barriers from the recent slump to $6,530. The losses failed to find support in several areas including $7,700, $7,500 and $7,200.

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Meanwhile, the price is teetering at $7,193 amid low volume and low volatility levels. The immediate upside is limited at $7,200 while further movement north will come face to face with the seller congestion at $7,400 and $7,700 respectively. The 50 Moving Average is holding ground above the price at $7,414. A confluence created by the 23.6% Fibonacci retracement level and the 100 MA suggests that recovery will not come easy.

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XBT/USD Chart Source by TradingView

Bitcoin futures contract on BitMEX is also trading within the apex of a symmetrical triangle. A break above the triangle resistance is likely to force a rally above $8,000. However, this will depend on the fundamental including, the volume and volatility as well as other technical indicators.

According to the Moving Average Divergence Convergence (MACD), Bitcoin is likely to settle in a sideways trend in the coming session. The largest crypto could close the week below the vital $7,400. Besides, if $7,000 support gives in, XBT/USD could spiral towards $6,000 riding on the impact of the triangle support breakdown.

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XBT/USD Technical Levels

BitMEX index price: $7,197

Volume: $2.7 billion

Open Interest: $678 million

MACD: Suggests possible sideways trading

Trend: Bearish

Summary

XBT/USD Analysis: Bitcoin Delays Breakdown But $6,000 Still Beckons – BitMEX Margin Trading

Article Name

XBT/USD Analysis: Bitcoin Delays Breakdown But $6,000 Still Beckons – BitMEX Margin Trading

Description

Bitcoin must defend $7,000 to avert a possible spiral targeting $6,000.
The formation of a symmetrical triangle suggests that a rally towards $8,000 is in the offing.

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 , 2019-12-05 06:55:26 ,

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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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