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Bitcoin (BTC) fell back towards support at the $7,250-$7,300 level on Dec. 1 after its latest sudden uptick began to fizzle overnight. 

Cryptocurrency market daily overview

Cryptocurrency market daily overview. Source: Coin360

Futures gap incoming if lower levels stay

Data from Coin360 showed the largest cryptocurrency shedding almost 30% of its gains from earlier in the week, dropping from local highs of $7,790 to around $7,300 at press time. 

The downside equated to 24-hour losses of 6% for Bitcoin, which began showing signs it would test support strength at $7,000. 

Previously, BTC/USD hit multi-month lows of $6,500 before rebounding almost $1,300 within a matter of days. 

At press-time levels, the pair was trading at exactly the same level as last Sunday. 

Bitcoin seven-day price chart

Bitcoin seven-day price chart. Source: Coin360

Now, analysts were looking for factors that could influence short-term momentum up or down. In particular, Cointelegraph contributor Michaël van de Poppe eyed a likely “gap” in Bitcoin futures markets. 

As Cointelegraph reported, Bitcoin price tends to “fill” points in its price which fall between where one futures trading session ends and another begins. 

After Sunday’s drop, a new gap will likely have opened up, van de Poppe said, as CME’s contracts finished Friday trading at $7,805. This would thus propel BTC/USD back towards $8,000. Last week, a gap at $7,200 was likewise swiftly filled. 

“Good part of this drop; another CME gap is created to the upside,” van de Poppe commented in a fresh Twitter update

Continuing, he added the potential for Bitcoin likely lay between $6,900 and $8,000:

“I’d be interested to see whether we can break $7,400 up here. If we can, then we might be able to go to $8,000 after all. If not, I’m aiming at $6,900-7,000 for some longs.”

Futures analysis delivered mixed results this week after CME’s monthly contracts settled on Friday. Data suggested that Bitcoin would likely gain following the payouts, but so far, an opposing price trajectory has characterized markets.

Overall sentiment among futures traders nonetheless remains bullish, with competitor Bakkt seeing record daily volumes for its own monthly contracts last week. 

Altcoins lose ground to BTC

Altcoin markets meanwhile saw a disappointing 24 hours, with many major cryptocurrencies shedding around 5%. 

Ether (ETH), the largest altcoin by market cap, fell 4.2% to $147, while others fared worse. Litecoin (LTC), for example, was down 6.1%.

Ether seven-day price chart

Ether seven-day price chart. Source: Coin360

The overall cryptocurrency market cap was $198.7 billion, with Bitcoin’s share at 66.6%.

Keep track of top crypto markets in real time here

Cointelegraph By William Suberg , 2019-12-01 12:18:00 ,

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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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