Skip to content Skip to sidebar Skip to footer

Bitcoin’s bulls have been able to step up and support BTC’s price following its recent drop below $9,000, which points to an underlying strength that may signal that the cryptocurrency will soon post a strong recovery from its recent lows.

Analysts are now widely anticipating BTC to post decent gains in the near-term, with one analyst explaining that the crypto is currently forming a similar technical formation to the one that was seen just prior to its rally from $7,300 to $10,600.

Bitcoin Stabilizes Above $8,800 Following Recent Dip

At the time of writing, Bitcoin is trading down marginally at its current price of $8,825, which marks a slight drop from its 24-hour highs of just over $8,900 that were set earlier today.

Earlier this past week, Bitcoin plummeted from its previous trading range between $9,000 and $9,500, which showed that bears had gained the upper hand over BTC’s bulls, although its drop quickly grinded to a halt after it found significant support around $8,800.

In the near-term, analysts are noting that they anticipate the cryptocurrency to climb past $9,000 before it hits a resistance level that sends it spiraling significantly lower.

The Cryptomist, a popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, telling her followers that she believes BTC will tap $9,200 before it continues descending lower.

“$BTC: Short term looks like bulls have chance to push price back up to 9.2 region, before further downside. Possible falling wedge here on the 4hr time frame. Still could be one further touch at support,” she said while pointing to the below chart.

Could BTC Be Gearing Up for Another Massive Surge?

Although The Cryptomist believes that BTC will continue falling lower after a brief upwards movement, other analysts believe that the crypto may be gearing up for another massive surge similar to the one seen in late-October.

Galaxy, another popular analyst, spoke about this possibility in a recent tweet, pointing to a chart that shows that BTC is building a similar technical formation to the one that was formed just prior to its rally that sent it from $7,300 to $10,600.

“Bears are funny creatures. They also start hibernating in November. Send it. $BTC,” he said while referencing the chart seen below.

The coming few days and hours will likely elucidate whether or not bulls will soon step up and catalyze another massive BTC movement, or if the crypto will cut deeper into the gains it posted at the end of last month.

Featured image from Shutterstock.

Cole Petersen , 2019-11-10 19:30:49

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