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Bitcoin (BTC) has plummeted into the $7,000 region today as bears continue working to erase all the gains that were incurred during the crypto’s meteoric rally in late-October, which may signal that significantly further downside is imminent for the embattled cryptocurrency.

Analysts are now noting that Bitcoin is “on life support” as it trades around a critical support level, and analysts are also noting that a lack of a decisive bounce at the cryptocurrency’s current price levels could mean that a move to sub-$7,000 is imminent.

Bitcoin Plummets Below $8,000 Support Level, Putting it on “Life Support” 

At the time of writing, Bitcoin is trading down 6% at its current price of $7,650, which marks a notable drop from its daily highs of $8,300, and an even steeper drop from its weekly highs of $8,800.

Bitcoin has been caught in a bearish downtrend ever since it retraced from its multi-month highs of $10,600 that were set at the peak of the late-October rally, and today’s drop simply marks an extension of this downtrend.

Prior to today’s movement, $8,000 had been holding as a strong level of support, and in the near-term the only clear support level that is stopping BTC from plummeting significantly lower exists at roughly $7,700.

Mayne, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling his followers that the crypto is currently sitting at “life support.”

“$BTC: On life support,” he said while pointing to the below chart.

BTC Likely to Visit Sub-$7,000 Region in Near-Term  

If Bitcoin is unable to post any sustainable bounce at its current price levels, it is highly probable that it will soon face significantly further downside as its bears take firm control of its near-term price action.

Loma, another popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling his followers that BTC is an “easy short to sub-$7,000” assuming it isn’t able to find any strong momentum at its current price levels.

“$BTC I wasn’t awake for it but we dumped to $7,800, no bullish reaction at all and dumped straight through a few hours later. Bears win again. Loma spot longs underwater but expecting some kind of relief here. No bounces here and it’s an easy short to sub $7,000,” he explained.

The coming few hours will likely elucidate how Bitcoin will trend for the rest of 2019.

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Cole Petersen , 2019-11-21 23:00:35

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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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