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  • Donald Trump, the President of the US, decides to postpone the Phase 1 trade deals with China along with threats of increasing tariffs.
  • Bitcoin [BTC] dropped to test lows at $7100 on Tuesday, despite positive cues from global macro.
  • Gold, on the other hand, records gains as expected from such an event.

The Bitcoin [BTC] investment rhetoric this year began with the ‘safe haven’ dialect. The trade war between the US and China heightened during Q2. Consequently, Bitcoin and gold, both regained over 150% and  18%, respectively.

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gold usd bitcoin
Gold/USD 1-Day Chart on Bitstamp (TradingView)

The downside post of September is also correlated with gold. However, the current macro structure will threaten a massive decoupling of these factors. If the stock market and global trade continue to see adversities and Bitcoin [BTC] remains bearish, the store of value argument will be questioned.

Moreover, the halving speculation is still ongoing with the event due in May. Bitcoin investor, Alistar Milne, noted,

Please tell me again how ~$45million / week of unsatisfied demand won’t move the price when Bitcoin’s halving occurs …

He is referring to the compensation in the selling pressure from miners, as half will reduce Bitcoin rewards in May 2020. Currently, about $13-15 million is needed to balance the number of daily rewards in Bitcoin [BTC].

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The market usually discounts the value of the gains in the future. However, this time around, it seems to be waiting for the event to occur.

Bitcoin [BTC]: A look at the charts

Moreover, according to leading analysts, the trend is still bearish. Bitcoin [BTC] price is close to its lows as it ranges between $7100-$7400. Crypto trader, XC tweeted,

Leaning bear here with our inability to print a HH (Higher High). Don’t see this support holding for much longer at the current rate. $BTC

btcusd 1 day chart
BTC/USD 1-Day Chart on Bitstamp (TradingView)

A bullish move above weekly close at $7800 would be the next bullish cue. However, the volume is also considerably weaker than previous bull cycles. A break to the downside could lead the price to swing lows at $6515.

Do you think Bitcoin’s technical forces are stronger than fundamental events? Please share your views with us. 

Summary

Bitcoin Drops to $7100 even with Positive Fundamentals - Is $6500 Incoming?

Article Name

Bitcoin Drops to $7100 even with Positive Fundamentals – Is $6500 Incoming?

Description

The Bitcoin [BTC] investment rhetoric this year began with the ‘safe haven’ dialect. The trade war between the US and China heightened during Q2. Consequently, Bitcoin and gold, both regained over 150% and  18%, respectively.

Author

Nivesh Rustgi

Publisher Name

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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Nivesh Rustgi , 2019-12-04 05:33:33 ,

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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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