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  • Bitcoin longs traders look forward to an almost certain falling wedge pattern breakout.
  • Bitcoin short term trend clouded by a bearish bias; targets $8,000.

Bitcoin perpetual swap contact longs traders on BitMEX margin trading platform have remained bullish despite the recent slump. In addition to that, the price is strongly pressed down upon by broken support areas that transformed into resistances. Besides, the price can be seen to be narrowing down below a higher low pattern towards $8,000.

Following the slump on Friday, Bitcoin’s price action has been lethargic under $9,000. A step above $9,000 failed to garner support hence Bitcoin slumped back into the $8,000 and even broken the weekend support at $8,600. A new November low has been formed at $8,550 and XBT/USD has adjusted to $8,747 (current market value).

XBT/USD daily chart

XBT/USD price chart
XBT/USD price chart by Tradingview, BitMEX

Technically, Bitcoin downside is still strongly bearish. For instance, the Relative Strength Index (RSI) is moving lower under the average. It has a target set on 40 but 30 is still within reach. If the RSI continues with the downtrend, it is likely that Bitcoin will disintegrate further towards $8,000 before finding a bottom.

In spite of the gloomy technical picture, the future is still bright for Bitcoin. The anticipated end-year rally is still possible especially with the formation of a falling wedge pattern. In classic technical analysis, this pattern signals a reversal following a continuous downtrend. In this case, I expect Bitcoin to explore the rabbit further towards $8,000 before a breakout is nurtured above $10,000 and heading to $10,000.

Bitcoin Price Technical Levels

RSI: Bearish bias

BitMEX Index Price: $8,750

Volume: $1.9 billion

Open interest: $826 million

Support: $8,400 and $8,000

Resistance: $8,800 and $9,000

Summary

XBT/USD Analysis: Bitcoin On Verge Of A Breakout To $10,000 – BitMEX Margin Trading

Article Name

XBT/USD Analysis: Bitcoin On Verge Of A Breakout To $10,000 – BitMEX Margin Trading

Description

Bitcoin longs traders look forward to an almost certain falling wedge pattern breakout.
Bitcoin short term trend clouded by a bearish bias; targets $8,000.

Author

John Isige

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Coingape

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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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John Isige , 2019-11-12 09:57:43 ,

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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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