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Bitcoin (BTC) fell below $7,000 once again on Nov. 27 as fresh selling pressure suddenly impacted already fragile markets.

Cryptocurrency market daily overview

Cryptocurrency market daily overview. Source: Coin360

Likely exchange hack rocks BTC price

Data from Coin360 showed BTC/USD suddenly dive back into the $6,000 range on Wednesday, having previously held ground around $7,200. 

At press time, a low of $6,860 saw a subsequent modest bounce higher, with Bitcoin still remaining below the $7,000 barrier. 

Bitcoin seven-day price chart

Bitcoin seven-day price chart. Source: Coin360

The performance coincided with emerging rumors of suspicious activity at major South Korean cryptocurrency exchange Upbit. As Cointelegraph reported, altcoin funds worth in excess of $50 million suddenly left the platform on Wednesday, sparking fears a possible hack had occurred. 

Upbit released a statement that appeared to admit funds had been stolen, confirming it had shut down deposits and withdrawals while it investigated.

“To ensure that your assets are harmed, 342,000 ETH transferred to unknown wallets will be covered by upbit assets,” Lee Seok-woo, CEO of parent company Dunamu wrote. He added it would be “at least two weeks” before users regained access to their balances for withdrawal.

Reacting, not everyone was convinced that Upbit in and of itself was moving markets.

“I actually do not think the UPbit incident is moving down the price of bitcoin because it shouldn’t really. UPbit is covering for all losses. If it is related, it would be that the ‘hacker’ is selling it, which is difficult to do it so quickly after the incident,” South Korea-based Cointelegraph contributor Joseph Young commented.

Bitcoin markets were already trading precariously this week after similar negative sentiment from China weighed heavily on traders. 

As Cointelegraph reported, analysts believed Beijing authorities’ commitment to stamp out exchanges caused a sell-off worldwide, with investors keen to exit their positions in order to buy back in at a lower price. 

Other factors, such as tax maneuvers and liquidity shortages, were reportedly also to blame.

Altcoins still remaining steady 

Altcoins were slower to react to Bitcoin’s downward trajectory. Out of the top twenty cryptocurrencies by market cap, most had yet to move significantly at press time.

Ether (ETH), the largest altcoin, was still flat at 0.2% lower over the past 24 hours, at around $146.

Ether seven-day price chart

Ether seven-day price chart. Source: Coin360

Others fared worse, with Bitcoin SV (BSV) down 5.3% and Tezos (XTZ) 6.3%. Conversely, Tron (TRX) delivered modest gains of 1.8%.

The overall cryptocurrency market cap was $191.4 billion, with Bitcoin’s share at 66.2%.

Keep track of top crypto markets in real time here

Cointelegraph By William Suberg , 2019-11-27 11:43:00 ,

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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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