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Bitcoin’s recent bout of intense selling pressure has slowed as the crypto finds some support within the lower-$8,000 region, which appears to be holding strong as its price has been able to slowly inch higher in the time since BTC touched its near-term support level.

Analysts are now noting that Bitcoin may currently be expressing a similar pattern to that seen in 2017, which could mean that it is exiting its corrective period and entering another fresh uptrend, assuming that history rhymes.

Bitcoin Holds Steady Above Near-Term Support as Next Consolidation Phase Begins

At the time of writing, Bitcoin is trading up under 1% at its current price of $8,562, which marks a slight climb from its recent lows of under $8,400 that were briefly set during its recent drop, at which point it incurred a slight influx of buying pressure that helped slow its decline.

It does appear that Bitcoin is once again entering a fresh consolidation period, which may mean that it will trade sideways around its near-term support level before it incurs another swift movement.

This notion is supported by the fact that BTC’s Bollinger Bands have been tightening up in the time following its recent drop to its current levels, which typically signals that a big movement is imminent.

Big Cheds, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet while pointing to BTC’s one-hour candle chart.

“$BTC #Bitcoin – Bands are tight on the 1 hour,” he explained while referencing the below chart.

Will BTC Soon See Similar Price Action to that Seen in 2017? 

Bitcoin’s recent price action may be similar to that seen in 2017, according to one analyst, who notes that the recent series of downwards movements could simply mark stop runs that will ultimately be proceeded by another major upwards movement.

HornHairs, a popular crypto analyst on Twitter, spoke about this possibility in a recent tweet, noting that Bitcoin may soon leave its current corrective period.

“I still remember the exact moments of each of these stop runs on $BTC during 2017. Each turned out to be a turning point and end of a corrective period in the larger bull run. I can’t help but think we saw the exact same thing happen recently, just on the weekly chart,” he explained while offering a side-by-side comparison of the charts seen below.

The coming weeks will likely offer insight into the validity of this possibility, as any surge from BTC’s current levels could confirm that this corrective period is truly over and that further gains are imminent.

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Cole Petersen , 2019-11-16 18:00:35

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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.

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Nick Chong , 2019-11-10 12:00:38

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