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  • Bitcoin nurtures a sideways trading trend above $7,000.
  • The inverted head-and-shoulders pattern suggests that Bitcoin could breakout above $8,000 and $8,200.

Bitcoin’s perpetual swap contract on BitMEX has continued to impact sentiment towards the largest cryptocurrency in the industry positively. In the last 24 hours, the contract has attracted $2.4 billion in trading volume. It features a $609 open interest and a funding rate of 0.0037% over the previous seven hours.

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XBT/USD 1-hour chart

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

The 1-hour chart for XBT/USD shows Bitcoin recently staged recovery having hit a dead-end at $7,400. The trading action that followed the resistance has been mostly sideways. Bitcoin continues to fight hard to stay above $7,000.

Meanwhile, the immediate upside is forced to deal with the resistance provided by the 50 Exponential Moving Average (EMA) on the 1-hour chart currently holding ground at $7,114. A glance higher reveals more resistance at the EMA 100 ($7,200). When considering a broader look and taking into account the scope above $8,000, $7,400 supply zone must be disintegrated to pave the way for bullish price action.

The formation of an inverted head-and-shoulders pattern hints that Bitcoin’s price is on the verge of a breakout. An inverted head-and-shoulders pattern is used in classical technical analysis to signal a reversal of the previous downward trend. With the right amount of volume and other supporting indicators, Bitcoin could forge its path above $8,000. Besides, the pattern breakout has eyes on $8,200.

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The present technical picture supports a sideways trading action. The RSI is relatively bullish at press time, although it has corrected from highs around 67.61. As long as it maintains a gradual upward motion, BTC will eventually breakout heading towards $8,000.

Bitcoin Key Technical Levels

Support: $7,000, $6,800 and $6,500

Resistance: $7,200, $7,400 and $8,000

RSI: Upward slopping suggests growing bullish strength

Summary

XBT/USD Analysis Nov 27: Bitcoin Readies For One Ballistic Breakout Targeting $8.2k – BitMEX Margin Trading

Article Name

XBT/USD Analysis Nov 27: Bitcoin Readies For One Ballistic Breakout Targeting $8.2k – BitMEX Margin Trading

Description

Bitcoin nurtures a sideways trading trend above $7,000.
The inverted head-and-shoulders pattern suggests that Bitcoin could breakout above $8,000 and $8,200.

Author

John Isige

Publisher Name

Coingape

Publisher Logo

cryptocoach

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 , 2019-11-27 08:30:28 ,

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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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