Skip to content Skip to sidebar Skip to footer

Bitcoin (BTC) failed to reclaim $8,500 on Nov. 18 as market sentiment continued trending downwards over the weekend.

Cryptocurrency market daily overview

Cryptocurrency market daily overview. Source: Coin360

Bitcoin hovers at decisive $8,400 level

Data from Coin360 showed BTC/USD attempting to crack the $8,500 level on Monday, only to see rejection after falling from $8,600 late on Sunday. 

At press time, the pair traded around $8,450 – a crucial area which analysts suggest could dictate whether the mood going forward is bullish or bearish. 

Bitcoin daily price chart

Bitcoin daily price chart. Source: Coin360

“Do or die for the Bulls. This level needs to hold,” regular Cointelegraph contributor Michaël van de Poppe summarized in private comments.

In his most recent Twitter update, van de Poppe added that while the overall situation was “still not bad,” losing support at $8,400 would open up the potential for Bitcoin to return to $7,400. The move would mark a return to levels broken last month in an abrupt bull run which took the cryptocurrency to over $10,500. 

Other sources were also weary, with trader Scott Melker eyeing a breakdown in Bitcoin’s relative strength index (RSI). A measure of price change, RSI breaking resistance can spill over to impact on Bitcoin price.

“RSI has broken through both major descending resistances. Price usually follows,” Melker said on Sunday.

As Cointelegraph reported, RSI action suggests Bitcoin is now at the start of a new extended price cycle.

Altcoins return to red

Altcoins meanwhile halted their weekend advance to turn broadly negative as the week began. 

Across the top twenty cryptocurrencies by market cap, most coins fell by around 1.5% on the day. Among the exceptions was market leader Ether (ETH), which managed to stave off losses and trade sideways at $183.

Ether 7-day price chart

Ether 7-day price chart. Source: Coin360

Tezos (XTZ) managed a stronger performance, rising 3% to hit $1.19, while VeChain (VET) achieved 2.8% gains and Cardano (ADA) 4.3%.

The overall cryptocurrency market cap stood at $234.3 billion, with Bitcoin’s share at 65.9%.

Keep track of top crypto markets in real time here

Cointelegraph By William Suberg , 2019-11-18 10:25:00 ,

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