Skip to content Skip to sidebar Skip to footer

After an extended period of trading sideways around $8,500, Bitcoin’s bulls have begun to fight back, pushing the crypto towards $8,700. In spite of this upwards movement today, it is important to note that BTC has not yet been able to climb back above its previous support level around $8,800.

Analysts are now noting that they believe Bitcoin is close to forming a long-term bottom that will help propel its price higher in the near-term, in spite of the bearish conditions surrounding its trading volume.

Bitcoin Climbs Towards $8,700 as Bulls Push Back Against Bears

At the time of writing, Bitcoin is trading up over 1% at its current price of $8,650, which marks a decent climb from its recent lows of $8,300 that were set at the bottom of the drop that BTC incurred earlier this week.

Prior to visiting these lows earlier this week, Bitcoin had been finding significant support between $8,700 and $8,800, so it is highly probable that this level will now act as resistance as bulls attempt to push the cryptocurrency back above this price region.

It is important to note that Bitcoin’s recent price action has come concurrently with a major decline in trading volume, which may be a bearish sign.

Cantering Clark, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, deeming this low volume as “ugly.”

“Ugly… Look at that volume on Bitmex. 784 Million. The last time 24 hour volume was this low was March 30th. Go ahead, look at that date on the chart. Realized and ATM Implied Volatility all at lows as well,” he explained.

Will Lower-$8,000 Region Mark a Long-Term Bottom for BTC?

In spite of the bearish trading volume that BTC is currently facing, it is also important to note that analysts still remain optimistic that the crypto will soon see further bullishness.

Nik Patel, another popular cryptocurrency analyst on Twitter, explained in a tweet that he believes Bitcoin could incur one more leg down towards $8,000 in the near-term, but also that he expects this region to mark a long-term bottom for BTC.

“I think we’re not far off the bottom for this leg in $BTC. Discussed $8300 as a likely area for price to find support in the Market Outlook in late October… could drop to $8060 but I doubt any further. Thinking we get higher-timeframe range chop until year-end though,” he explained.

How Bitcoin continues to react to the lower-$8,000 region will provide invaluable insight into whether or not the crypto will end 2019 on a bearish note, or if bulls will be able to propel its price higher in the near-term.

Featured image from Shutterstock.

Cole Petersen , 2019-11-17 19:30:02

Source link

Leave a comment

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

Source link