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  • Bitcoin is grinding towards a couple of bullish pattern breakouts; the triangle and falling wedge pattern breakout.
  • The search for formidable support or bottom will continue before the rally begins.

Bitcoin declines in the last couple of days have been an extension of the breakdown that took place on Friday. The weekend session served as ‘a breather as bulls nursed their wounds. The unsure bulls slid into hibernation giving the mantle back to the bears who pushed Bitcoin towards $8,000. Many analysts believe that Bitcoin is in for another rough ride before the correction begins in readiness for a potential end of the year rally.

While the majority of analysts remained bearish, I am going to explore a couple of scenarios that could help investors remain optimistic regarding Bitcoin. For instance, the formation of a descending triangle pattern suggests that a reversal is in the offing. However, it is important as an investor that you remain realistic. Bitcoin has the potential to break out of this triangle pattern and ignite momentum in a trajectory towards $14,000. You also have to keep in mind that other factors come in play like the volume and the volatility.

XBT/USD 4-hour chart

XBT/USD ptice chart
XBT/USD price chart 3by Tradingview, BitMEX

Looking at the sharply falling Relative Strength Index (RSI), it is clear that the current bearish momentum could last longer. A break below $8,000 is potentially possible. However, a reversal is expected on the RSI hitting oversold conditions.

Meanwhile, within the same triangle is a short-term falling wedge pattern. The pattern is close to a breakout. A lower correction is expected in the search for a formidable support of bottom area. In turn, a ballistic correction to levels close to $10,000 is expected to emanate from the wedge resistance break aided by the above-mentioned triangle breakout.

Bitcoin Key Technical Levels

BitMEX price index: $8,077

Volume: $2 billion

Open Interest: $841 million

Funding rate: 0.01%

RSI: Dropping signals bears’ dominance

Trend: Bearish

Summary

XBT/USD Analysis: Bitcoin Price Hidden Bullish Picture Targets $14k – BitMEX Margin Trading

Article Name

XBT/USD Analysis: Bitcoin Price Hidden Bullish Picture Targets $14k – BitMEX Margin Trading

Description

Bitcoin is grinding towards a couple bullish pattern breakouts; the triangle and falling wedge pattern breakout.
The search for a formidable support or bottom will continue before the rally begins.

Author

John Isige

Publisher Name

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 , 2019-11-20 06:19:09 ,

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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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