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  • $6,600 supports the only fence between Bitcoin and $5,000.
  • The falling wedge pattern support must be protected at all cost as it could be the next bull rally determinant.

Bitcoin battered bulls are not giving up hope. They have endured constant selling pressure since Friday last week. The dive under $8,000 literally opened the Pandora box as XBT/USD sunk beneath several key support areas including $7800,7,400, $7000 and $6,800. The Asian hours on Tuesday saw Bitcoin forced to accept a drab start to the week where it extended the bearish leg towards the key $6,600 support.

At the time of writing, a shallow recovery has pulled Bitcoin above $7,000. XBT/USD is exchanging hands at $6,717. The drop below $8,000 was mainly driven a break below the symmetrical triangle pattern. Increasing Bitcoin shorts positions was similar to adding fire to gasoline.

XBT/USD 4-hour chart

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

Consequently, Bitcoin is likely to continue with the downtrend especially if the support at $6,600 fails to hold. Moreover, the support of a forming wedge pattern must be defended by all means. A drop below the pattern could fuel Bitcoin towards $5,000 level.

On the brighter side, the falling wedge pattern resistance break could signal a credible and formidable reversal above $7,000 and towards $8,000. As get closer to the end of the year, Bitcoin is likely to change focus towards $9,000.

The RSI is still forming a lower high pattern. For sustainable gains, the pattern has to be broken to allow the bulls to take over the mantle. The volatility at the moment is still high, therefore, an improving technical picture will ensure that buying entries increase. For now, staying above $6,600 is key to making sure that $5,000 remains at bay while BTC shifts focus towards $7,000.

Bitcoin Technical Levels

BitMEX Index price: $6,665

Volume: $3.7 billion

Open interest: $670 million

Volatility: High

Bullish Indicator: Falling wedge pattern

Summary

XBT/USD Analysis: Bitcoin Tests $6,600 Support As $5,000 Comes Calling – BitMEX Margin Trading

Article Name

XBT/USD Analysis: Bitcoin Tests $6,600 Support As $5,000 Comes Calling – BitMEX Margin Trading

Description

$6,600 is support the only fence between Bitcoin and $5,000.
The falling wedge pattern support must be protected at all cost as it could be the next bull rally determinant.

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 , 2019-11-25 05:48:02 ,

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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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