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Love it or hate it, twitter is an integral part of the crypto scene. Sentiment is often gauged by reaction from Bitcoin market analysts and industry insiders who spend their time on the social media platform. Recent charts indicate that overall engagement has declined back to levels as low those two years ago.

Tweeters Go Silent on Bitcoin

The irony is that a lot of what goes on in the cryptoverse revolves around postings on a centralized social media platform. This maybe testament to the immaturity of the scene in that tribalism and infantile bickering is still rife on the platform. The bottom line is that we all want the same thing, and that is the growth of Bitcoin and crypto asset ecosystem for a decentralized financial future.

According to ‘Skew Markets’ twitter engagement for Bitcoin has fallen to lows not seen for two years.

This may not be the case for other crypto assets but Bitcoin at least appears to have fallen out of flavor on the social media platform. The peak came with price in early 2018 when daily tweets topped 150k. Today they’re down below the 20k level according to the chart.

It could be that the space has evolved beyond twitter which would be a good thing since the whole scene there is a bit of a circus, as anyone that uses the platform would agree. Intrusive advertising and unfettered spam and scam attempts are rife which does not make it the best stage for an industry advocating the adoption of decentralized digital assets.

Just like Facebook, twitter controls what people see in their feeds and the whole stream of information is becoming more irrelevant which could explain the lack of engagement. ‘Influencers’ as they’re so called are often only interested in promoting their chosen crypto asset, be it Bitcoin, BCH, BSV, ETH, XRP or whatever.

That said there are a few professional analysts and industry insiders worth following if you have the inclination to sort the wheat from the huge pile of twitter chaff.

BTC Bears Back In Town?

With Bitcoin tumbling back to $8,000 the entire scene has turned bearish again with wannabe analysts shouting about further dumps to $5k or below.

There is also a lot of FUD about miner capitulation as the halving approaches and the possibility of the first ever bearish lead up to the event. One of twitter’s more respected analysts and researchers, ‘PlanB’ has noted that this has also happened before.

“Fact is that 6 months before 2012 halving we were above difficulty model value, in 2016 below, and now spot on.”

It could be that twitter engagement is indicative of falling market sentiment, but back when tweet levels were this low in January 2017, BTC was priced below $1,000 and today the scene is very different.

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Martin Young , 2019-11-21 05:15:22

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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.

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Nick Chong , 2019-11-10 12:00:38

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